Many people have heard that a new law has done away with bankruptcy. Nothing could be further from the truth.
Bankruptcy is still an available option for good people who are struggling with serious debt problems.
The “new” bankruptcy law took effect on October 17, 2005. It’s official name is the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA). A better name would be the “Bankruptcy Prevention and Consumer Abuse Act of 2005″ because that is really what the two-pronged effect of this new law.
For 8 years the credit card companies spent hundreds of millions of dollars lobbying Congress to change the bankruptcy laws. The credit card companies argued that bankruptcy abuse was rampant and that the majority of bankruptcy filers were deadbeats simply looking for an easy way out. On the other side where many knowledgeable bankruptcy judges, law professors, and consumer advocates who warned against the harm that would come from passing this poorly drafted and not well thought out legislation. Unfortunately, the big money offered by Capital One, Citibank, MBNA and other credit card companies finally won out in 2005.
The new law has made filing bankruptcy more difficult and more expensive. What was already a complex area of law is now even more difficult. There is more paperwork involved, the paperwork is much harder to complete, and if the paperwork is not completed correctly there are harsh consequences that can be suffered.
Now more than ever people filing bankruptcy need an experienced bankruptcy lawyer to guide them through the bankruptcy process.
One of the new requirements is that a person must take an approved credit counseling course within 180 days before filing bankruptcy. However, you don’t need to take th credit counseling course before seeing a bankruptcy lawyer and I would suggest that you don’t. A good bankruptcy attorney can answer any questions you may have and can help you get signed up for the credit counseling course.
A financial education course is now required before you can receive a bankruptcy discharge, but this course is taken after your bankruptcy is filed, not before. Your bankruptcy lawyer will give you information regarding the specifics of this course.
If you are struggling with serious debt problems and would like to know more about how bankruptcy may be able to help you, contact me today by phone or email to schedule a FREE initial consultation. I would count it a privilege to be able to visit with you in a relaxed and confidential environment where I’ll answer all of your questions in plain English and give you the straight scoop on the pros and cons of bankruptcy as related to your specific situation.
