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MEETING WITH A BANKRUPTCY LAWYER OR
ATTORNEY
Your initial meeting with a Bankruptcy Lawyer or Bankruptcy
Attorney, should give the Lawyer an opportunity to assess your
financial situation, your goals, and the options available to you.
You should feel that you can communicate well with the Bankruptcy
Attorney or Bankruptcy Attorney and have confidence that your
matters are handled with competence and care. Ask the Lawyer how
much of his or her practice involves Bankruptcy Law and what portion
of the Bankruptcy cases are similar to yours. Note whether the
Bankruptcy Attorney answers your questions and explains matters in a
manner you can understand. Do you feel comfortable asking the
Bankruptcy Lawyer or Bankruptcy Attorney to further clarify matters?
Filing Bankruptcy is stressful enough without having to wonder if
you understand what is happening.
Review the pricing structure of the Attorney services. Most
Bankruptcies are done for a flat fee. Ask the Attorney what costs
there are in addition the flat fee, and get the arrangement in
writing.
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MAIN CHANGES
TO NEW BANKRUPTCY LAW
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 The
Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 took
effect on October 17, 2005. There are numerous changes that came
about as a result of the new bankruptcy law:
Mandatory Credit Counseling
Anyone filing for bankruptcy must now undergo credit counseling and
receive a credit counseling certificate through a program approved
by the Department of Justice. Generally, you need this certificate
at least 24 hours before filing bankruptcy. Therefore, especially if
you are facing a foreclosure, make sure you obtain this certificate
promptly.
Stricter Eligibility for Chapter 7 Filing
Under the new law, bankruptcy applicants who wish to file Chapter 7
bankruptcy must meet eligibility requirements under a “means test”.
Under the means test, if your current monthly income is less than
the median income in your state, you can file for Chapter 7
bankruptcy. This median income figure changes constantly, but our
bankruptcy attorneys or bankruptcy lawyers can advise you of the
current figures. If your current monthly income is above the median
income and you can afford to pay $100 per month towards your debt
(or $6,575 over a five year period), then you must file Chapter 13
bankruptcy.
Tax Returns and Proof of Income Required
In order to file either Chapter 7 bankruptcy or Chapter 13
bankruptcy, we must show, at a minimum, the last two years tax
returns and proof of income for the last six months.
Fewer Automatic Stay Protections
People who file bankruptcy have generally been entitled to certain
immediate protections from creditors, including most debt collection
and lawsuit actions. This is called the Automatic Stay because
creditors are automatically stayed or prevented from making
collection efforts. Under the new bankruptcy law, some protections
have been eliminated. Filing for bankruptcy no longer stops
evictions, drivers license suspensions, actions for child support or
divorce proceedings.
Priority Status for Unpaid Child Support and Alimony
Under the new bankruptcy law, persons owed unpaid child support and
alimony take priority over other creditors. In a Chapter 13
bankruptcy, this means these persons are paid before any other
creditor.
Mandatory Financial Management Education
At the conclusion of bankruptcy proceedings, but before any debt can
be discharged, bankruptcy debtors must participate in an approved
financial management education program. This can be completed by
phone or on-line.
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Our affiliate company,
Julian Credit Management (www.JulianCredit.com) is a Credit Counseling
Organization and offers Credit Repair, Settlements, Mortgages Loans and
Refinancing. |
