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BANKRUPTCY REFORM
As with any major life decision, the decision to
file or not
to file bankruptcy should be one that should be thoroughly
analyzed.
Clearly the new bankruptcy law has made it more
difficult for
those in debt to declare bankruptcy. The goal of the new bankruptcy
laws was to ensure that only those individuals truly needing a
complete discharge of their debts are able to file. This has led
to the misconception that bankruptcy is not available anymore.
Changes in 2005 to the United States Bankruptcy
Code opened a new era in the history of bankruptcy law requiring
you to qualify before filing for a Chapter 7 bankruptcy using
the Means Test. The Means Test looks at your average income for
a period of time before filing and compares your income with the
median income for your state of residence. Other requirements
were also implemented. You must receive a briefing from a credit-counseling
agency that is approved by the Bankruptcy Court within six months
of filing for Chapter 7 bankruptcy protection. In addition, you
will also be required to complete a financial management class
prior to discharge of your debts.
While it is not required to have an attorney when
filing for bankruptcy, it is definitely advisable. The bankruptcy
paperwork can be daunting and depending on the amount of debt
and assets that you have, the process can be highly complex. While
this might be a stressful time for you, we at Carrillo and Carrillo,
P.A. will guide you and explain to you in detail all the bankruptcy
reform laws and how they apply to your unique situation.
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