Although it is possible for you to steer your way through individual bankruptcy without legal help, it’s not always the best idea.
People considering declaring bankruptcy will be much better served by contacting a qualified and experienced bankruptcy attorney, who is trained in the new laws connected with federal bankruptcy.
As times change and the general economic dynamics adjust with them, laws pertaining to bankruptcy have gone through some transformations.
More often than not, the changes make life easier for those to protect their assets from collectors during bankruptcy proceedings. But, these changes also carry with them certain additional duties for the individual.
Before sweeping changes were made a few years ago, people could declare bankruptcy, go through the court procedures and leave free as a bird.
However, this technique allowed them the chance to increase their personal debt and do everything yet again seven years later. There was clearly no desire for them to learn better financial management and no incentive to take control of their financial lives.
Those who choose to seek bankruptcy relief today must proceed through two different financial management courses. They have to attend one just before they file and one ahead of the final discharge of their individual bankruptcy, to help them manage their spending habits.
Classes they take have to have been authorized by the court to ensure the classes weren’t established as a way for participants to simply go through the motions to meet the court’s requirements.
Since creditors often lose out when bankruptcy must be used, they lobbied notably to get the laws changed. Particularly, credit card issuers and medical providers, whose debts are generally considered personal debt and have no recourse in obtaining collection through collateral repossession, made an endeavor to get new laws approved.
While there were great changes in the laws, with the help of a bankruptcy legal professional just about anyone can get their finances in order.
The latest changes make it quite difficult for people to file for Chapter 7 when they do have an income, which often forces them into Chapter 13. In Chapter 13, debts they have accrued are repaid through monthly obligations handled through the federal bankruptcy court.
It normally requires three to five years for the many debts to be paid back under this sort of bankruptcy, but the debtor retains ownership of their personal property.
Before you decide to undertake the task of filing for bankruptcy alone, talk to a bankruptcy lawyer. A skilled bankruptcy attorney can help be sure you’re filing out the correct paperwork and declaring the most suitable form of bankruptcy.