According to the new bankruptcy laws, individuals with higher income can no longer qualify for Chapter 7 bankruptcy. These individuals will have to repay at least a portion of the debt under Chapter 13. The new laws require all debtors to go through debt counseling before they want their debts to be wiped off. This new law has made it difficult for everyone to file bankruptcy. For many individuals, filing bankruptcy was an easy way out of a massive debt they had no plans to pay. Since the laws are stringent, finding an attorney will become a difficult task.
Restriction on eligibility: Not everyone qualifies for bankruptcy now. Earlier individuals who filed for bankruptcy could choose the one Chapter that would be best for them. However, according to the new law, individuals with high income are not allowed to file Chapter 7. Instead they have to file Chapter 13 and repay at least part of the debt.
Debt counseling: Under the new bankruptcy law, any individual (you) wanting to file bankruptcy must, at first, have completed credit counseling with an agency that is approved by the United States Trustee’s Office. This counseling will finalize whether you need to file bankruptcy or can get other repayment options open for you.
More expensive Lawyers: As a result of the new bankruptcy laws, lawyers and attorneys are finding it difficult to represent clients in court. On top of that it is time consuming too and hence law firms are charging more money from clients. So, it has made lawyers more expensive. Since the new law imposes that the lawyers must vouch for the accuracy of the information provided by their clients, it means that attorneys have to spend more time on research. Hence, they are charging their clients a greater amount as fees than they earlier did.
Allowed expenses: The new law also suggests that any one filing bankruptcy has to live on less than they are used to. Not only will they have to hand over their disposable income but this disposable income will also be dictated by the IRS.
For more information please visit: http://www.floridalawattorney.com