Statistics prove that the implementation in October 2006 of the Bankruptcy Abuse Prevention and Consumer Protection Act has not reduced the number of filings in the country. Incidence of filings for bankruptcy petitions has grown over the past few years to new highs. The economic slump and resulting job losses in all corners of the nation has caused a steep hike in filings for bankruptcy petitions. If you are undergoing financial strain and business failure, consult with a bankruptcy lawyer to seek options.
According to the new law, your bankruptcy lawyer can be held accountable for any discrepancies in a client’s petition. Your lawyer would only be willing to take your case if he or she is convinced of the authenticity of your case. Filing for bankruptcy requires more work and effort from the lawyer to determine the validity of your case. When you think of hiring a bankruptcy lawyer, you will have to be completely transparent about your debts and assets. Any discrepancy can result in severe consequences for you and for your attorney.
The debtor must undergo a number of stringent measures before filing for bankruptcy. One of the main assessments is a qualifying test that consists of a two-part means test. A bankruptcy lawyer would advise you on the details and prerequisites for qualifying these tests. The attorney would also advise on whether to file for chapter 7 or chapter 13, the two most common chapters under which petitions are made.
Another novel feature of the law would require that the debtor undergo credit counseling and receive money management advice. Under provisions of the law, the debtor would have to undergo six months of credit counseling before filing a petition. These counseling sessions must be paid for from your own pocket and a certificate attesting your attendance of sessions should be included when you file your petition.
Under chapter 7 bankruptcy, the debtor was allowed to keep personal assets like family home and car and surrender non exempt properties. The law is now more stringent on this aspect. A number of conditions have been put into place that makes it more difficult to get full homestead exemption. A bankruptcy lawyer is most qualified to guide and advise you on such matters. You can seek legal advice online. The administrative process for filing a bankruptcy petition is a lengthy and complicated one. Taking the guidance of an experienced bankruptcy lawyer is essential to receive timely relief from heavy debts. When choosing your legal counselor, engage someone who will attend your needs and give full and genuine commitment to your case.