Under the new bankruptcy laws that were approved in 2005, it could potentially prove more difficult to find a bankruptcy lawyer. This is due to the fact that the new bankruptcy laws make it more complicated to file bankruptcy. Due to this, many lawyers have chosen to no longer offer this service.
For those lawyers who do offer the service, it is now more expensive for their clients because it takes more time. This means that under the redesigned bankruptcy laws, filing for bankruptcy is generally more expensive. For example, bankruptcy lawyers now have to personally attest to the accuracy of the information provided by their clients in the bankruptcy courts. This should usually mean more research of all the information provided by their clients.
While most of the changes under the new bankruptcy laws are aimed at those looking to discharge their debts under Chapter 7 Bankruptcy, there are some changes to the process of filing chapter 13 bankruptcy as well. Chapter 13 is designed so the person declaring bankruptcy will still work to pay back the debts. Generally, the creditors will work out monthly payments based on how much the individual has after accounting for living expenses. However, under the new bankruptcy laws, the IRS decides how much the living expenses should be. Typically, the individual filing bankruptcy has no control over the living expenses.
The new bankruptcy laws were most likely designed to reflect today’s unstable economy – many people were spending more than they had and then turning to bankruptcy when they could not pay what they owed. However, those that truly need to file for bankruptcy can still do so under the new bankruptcy laws.
Also, be sure to read about the latest bankruptcy news.
