New Bankruptcy Law

Understanding The New Bankruptcy Law Is Important For Those Planning To File

With the downturn in the country’s economic standing, many things have changed.  Beyond a soaring unemployment rate, we’ve experienced a decrease in sales for many different retailers and a change in the way many places do business.  With less money, a good number of people have turned away from places they formerly patronized and turned towards discount stores.  This forced the closure of many other businesses, or at a minimum, price hikes in the places that lost a high portion of their consumers.  Most of the places that lost enough revenue were forced to file for bankruptcy protection.

Along with this insurgence of filing for protection came change from the government in order to help avoid getting into this sort of situation in the future.  When a large number of accidents happen at a signed intersection, transportation officials review the accidents and the roads to see if there was a way that these incidents could have been prevented.  Because they have no control over individual drivers, they typically change the signs at the intersections and erect signals in their place.  Similar to this, when companies and a large number of individuals were forced to file bankruptcy due to their failing financials, the government took it upon itself to review the laws and rules surrounding this protection.  As a result, a new bankruptcy law came out in order to prevent people form abusing this right.

The new bankruptcy law incorporates many changes aimed at ensuring only those individuals and businesses which truly need to file can in fact do so.  It gives stipulations on the level of income that the individual or business must fall under in order to be eligible.  New bankruptcy law provisions require credit counseling, as a way to educate consumers and companies about how they should manage their financials and budget according to their income.  This helps in situations where a person or corporation abused their credit and overextended themselves through fault of their own.  Even when the need to file was due to an unforeseen event or circumstances, the credit counseling helps people plan for these situations in advance.

The above are the most prominent changes in the new bankruptcy law, but there are many more revisions to the law beyond these.  It is hard for the average individual to comprehend the laws as written, and increasingly more complex for one to realize how the changes can influence the outcome of filing.  Those who have filed before need to be knowledgeable of the revisions, as they directly affect their ability to file at all.  Just like people go to a tax professional when their situation falls outside the simple filing forms and methods, those looking to file bankruptcy should go to a lawyer to gain a thorough understanding of the new bankruptcy law.

A legal professional who specializes in this realm knows the ins and outs of the new rules and provisions and how they can and will influence each individual case.

Anyone or any business that finds themselves in dire straits should obtain a free consultation from a legal professional in order to figure out their rights under the new bankruptcy law.  The initial meeting with a lawyer will clear up any and all questions one has about filing, as well as determine if it is the best option for their personal situation.  If it turns out that filing is not the answer, then there is no need to set up additional meetings or retain legal counsel, and no money is exchanged.  In cases where filing for protection under the new bankruptcy law is the right thing to do, then the free consultation will indicate this, and the lawyer can advise the potential client with what their next steps should be.

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