When you come forward with a bankruptcy question, you need the help of a lawyer who has assisted many others with these kinds of concerns. Whether or not you file for Chapter 7 or Chapter 13 is a highly personal decision and one that should be discussed directly with an attorney you can trust. Make sure you set aside time to check out the lawyer’s qualifications. There are many different myths out there about bankruptcy, but an attorney can tell you what’s true and what’s not.
In recent years, Congress has undertaken many different plans to update the bankruptcy code in response to the bankruptcy crisis for the large numbers of people who are considering getting bankruptcy assistance. Because of this, they tightened the restrictions on both chapter 7 and chapter 13. After BAPCPA, also known as the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, certain stipulations were put into place regarding chapter 13. Both before and after filing, more is required from debtors as well as their bankruptcy attorneys. The debtor, for example, has to attend and pay for a pre-filing credit counseling course and complete a pre-discharge debtor education course.
Financial and personal documents have to be gathered in full in order to complete the filed schedules, including a comprehensive list of all creditors and the nature and amount of the claims. This includes the amount, source and frequency of the debtor’s income, a detailed explanation of the monthly living expenses, and the description of all property owned by the debtor. Your bankruptcy attorney will also need to prepare a formal notice describing the options available to the debtor and warn of any consequences of fraud or asset concealment.
The attorney also must make a statement that the debtor’s petition is well grounded in fact. Chapter 13 may be the most valuable way for you to pursue bankruptcy protection, although there are specific requirements associated with it. Having a knowledgeable bankruptcy attorney at your side can increase your chances of success and give you greater peace of mind.