Filing a Chapter 7 bankruptcy can be perplexing, especially in light of recent changes to the law. If bankruptcy is an option being considered, this is a significant reason to hire a bankruptcy attorney. The laws governing who is eligible to file for Chapter 7 bankruptcy have changed. Several legal constraints, such as the amount of expenditure and revenues, have been added. Many people do not qualify for Chapter 7 bankruptcy and must instead file Chapter 13.Do you want to learn more? Visit Holland Law Office – Loveland Chapter 7 Bankruptcy Attorney
A bankruptcy lawyer can explain the new rules and regulations that must be followed. There are also residency restrictions and financial counselling, as well as regulations concerning cash loans and expensive purchases made in the previous 60 days. This may be a tad intimidating for the ordinary buyer. This is why having an attorney on your side can be incredibly beneficial.
Determine how much is spent on living expenses and food will be one of the essential qualifications. The average amount spent on both cannot exceed $1100 per month. If there are more than that, Chapter 7 bankruptcy is not an option. To calculate wages minus food and housing, a “means test” is also utilised. If the requirements are met, a trustee will be appointed, and all non-exempt property will be sold. The definitions of non-exempt and exempt property differ from state to state. In the state where they practise, a bankruptcy attorney will know what is exempt.
In some states, homes and property are protected and cannot be liquidated to pay debts. This is because the United States Government Bankruptcy Code allows a debtor to keep some or all of their assets. When filing for Chapter 7 bankruptcy, you can dismiss 19 different types of debt. Credit cards, personal loans, leases, repossession problems, negligence lawsuits, medical bills, judgments, and tax penalties dating back more than three years are just a few examples.
Many people were opting for Chapter 7 bankruptcy since it dismisses or renders a debt unenforceable against the person who owes the amount. This is why the new laws have been enacted. A big number of people had gotten themselves into debt by taking on more and more new credit and then utilising Chapter 7 to get out of it. Another motivation for the revisions was to include resident requirements. The debtor must now reside in the state where he is filing for at least two years, according to the legislation.
Although some people believe they do not require the services of a bankruptcy attorney, this is not always the case. There are numerous forms to fill out and submit when filing a Chapter 7 bankruptcy. One of the tasks that the attorney might conduct is to ensure that they are correctly filled out. There are also deadlines to meet, and if you are unable to attend in court, the attorney can do so on your behalf. A bankruptcy lawyer can also get a stay in place to prevent bill collectors from seeking to collect after the bankruptcy has been filed.