Changes to Bankruptcy Laws - Why Attorneys Should Help You Navigate the New Laws
The changes to bankruptcy laws will change how debtors must be protected from their creditors. Under the new laws, certain types of debt will no longer be dischargeable and creditors can object to a discharge based on abuse. Higher-income debtors will be more likely to face such challenges. The new laws also make it easier for creditors to prove abuse. Attorneys should understand these changes before pursuing a bankruptcy case.
These changes are intended to protect businesses and individuals from the negative impact of a bankruptcy filing. While these changes are not yet law, there is support in Congress for reforming the bankruptcy laws for individuals. If you think you may qualify for a bankruptcy, talk to your bankruptcy attorney today. The changes are not as complicated as they might appear. You can learn more about them by reading the following articles. The bankruptcy laws are continually evolving, and the changes to bankruptcy laws are no exception. Attorneys can help you navigate the new laws and make the best decisions for you and your business.
Because of recent changes in bankruptcy laws, some people might find it difficult to file for bankruptcy. Alternatively, they might be forced to file under Chapter 13 instead of Chapter 7, or may need to work out a new repayment plan with an attorney. Furthermore, new bankruptcy laws require debtors to seek credit counseling before filing for bankruptcy. As a result, it can be difficult to find a bankruptcy attorney who meets these new requirements.
The new subchapter is supposed to be easier and more affordable for most filers. While it reduces creditor protections, it also makes the process more affordable for business owners. For instance, in a chapter 7 case, the business owner no longer has to repay all of his or her creditors in order to retain their equity interest. Another change affects cram down plans in a subchapter V case. The new chapter does not require the appointment of a creditors' committee.
There are many changes in the bankruptcy laws, including a new provision to limit the amount of creditor meetings. Debtors are also no longer prohibited from making large purchases in luxury stores. Instead, the trustee will look into recent purchases to evaluate the debtor's ability to pay. This change will make bankruptcy filing easier for people with low incomes. Whether or not you choose a bankruptcy attorney depends on your unique situation.
As mentioned, the 2005 amendments to bankruptcy laws were enacted by the federal government. These amendments will affect both businesses and consumers. The BAPCPA Act will increase the amount of debt that can be discharged. The new law also has more stringent requirements for people filing for bankruptcy. In addition, BAPCPA will require debtors to go through credit counseling before filing for bankruptcy. And a few other changes will impact the amount of debt they can discharge.