The majority of independent studies have shown this not to be the case. Nevertheless, many changes to the Law were designed to limit the rights of Debtors to the benefit of Creditors.

However, a competent Bankruptcy Lawyer or Attorney (now called a Debt Relief Agency under the Act) can help you navigate this minefield of new Bankruptcy Laws and actually use the new Bankruptcy Laws to your advantage.

For example, under the old Bankruptcy Law, a Bankruptcy Lawyer or Attorney could Value an automobile in a Chapter 13 Bankruptcy. To Value an automobile means to only pay the true “value” of the automobile in the Chapter 13 Bankruptcy, and not the entire loan. This usually means great cost savings to the Bankruptcy Debtor because most people owe a lot more on their automobiles than the car are actually worth.

The new Bankruptcy Law prohibits a Bankruptcy Lawyer or Attorney from valuing the personal property of the Bankruptcy Debtor if the property was purchased less than 2.5 years before filing Bankruptcy. This prevented many persons from valuing their automobiles. However, the Law prohibits the Bankruptcy Attorney from valuing the personal property of the Bankruptcy Debtor. Therefore, it is possible to Value the automobile if it is not personal property, for example, a work truck or the property of a non-filing son or daughter. In addition, even if the Bankruptcy Debtor obtained the automobile less than 2.5 years ago, the Bankruptcy Attorney can Value the automobile if the Debtor traded in another automobile in order to obtain the current auto, and the lender rolled the prior loan into the new loan.

There are some restrictions on this new developing area of Bankruptcy Law, and you should consult with one of the Bankruptcy Attorneys in our Law Firm as to whether you qualify for this benefit. Nevertheless, there are many aspects of the new Bankruptcy Law that can be worked to your advantage.

Our affiliate company,  Julian Credit Management (www.JulianCredit.com) is a Credit Counseling Organization and offers: