5 Things You Need to Know About New Bankruptcy Laws

There are 5 essential things you need to know about new Atlanta bankruptcy law, which have been enacted as part of a reform Congress passed called the Bankruptcy Abuse and Consumer Protection Act. Also referred to as BACPA. The goal of the new laws are to keep people from filing for bankruptcy simply because they don’t want to pay their debts. This is a slightly controversial stand, as more people need file bankruptcy due to illnesses, job loss, or injury. Anything other than simply not wanting to take responsibility. Still, the BACPA is in affect.

So here are 5 essential things you should know about these new bankruptcy laws:

1. There may be no more Chapter 7 bankruptcy. Chapter 7 resulted in the liquidation of all assets – the quickest way to a clean slate. With the new bankruptcy laws, if your income is higher than the average person within your state, you will need to file a Chapter 13. It requires that the debtor repay creditors within five years.
2. Chapter 13 is more complicated, which means anyone filing a Chapter 13 will need an attorney.
3. This is good for bankruptcy lawyers, as business escalates. However, it’s not great for filers as the high demand means higher fees, and more difficulty finding an attorney. Lawyers are also held responsible for all legal forms, and the accuracy of the information given, which again may mean higher attorney fees.
4. Bankruptcy, after the fact, is going to affect how and when you pay bills. Many of which will need to be paid in full. The new bankruptcy laws have extended the debts that will not be forgiven.
5. Finally, you will be required to obtain credit counseling within six months of filing a bankruptcy petition. This rule isn’t as defined as others in the BACPA, but the requirement is there nonetheless.

All in all, the new bankruptcy laws make it harder, more costly, and more time consuming to file for bankruptcy. The Laws are bound to become more callous. Which reminds us that bankruptcy should always be the last answer to financial problems. Take into consideration these essential things you now know about the new bankruptcy laws, and if bankruptcy truly is your only option. Contact the C. Golden and Associates Law Firm today and be confident that your Chapter 7 or Chapter 13 case is in the right hands.  Check with others first, then see why they are the best choice for a Bankruptcy Attorney in Gainesville GA.