Home » Articles » Finance / Wealth

Are You Familiar with the New Bankruptcy Law? If you intend to file, you must read this!

Are You Familiar with the New Bankruptcy Law? If you intend to file, you must read this!
"Numerous effects of the economic downturn, including the unemployment rate, decreased sales, and others, contributed to the poor financial conditions of businesses and individuals. Some businesses were forced to close due to extremely low sales and a lack of financial flow, while individuals were forced to adjust their spending due to a decline in income. Due to substantial financial losses, many businesses and individuals are unable to pay their debts and must therefore file for bankruptcy to obtain court protection.

As a means of debt relief, many people register for bankruptcy during economic downturns. So the government stepped in to verify the legitimacy of all filings, and a new bankruptcy law was enacted to prevent abuse of the right to file. In addition, the new law helps both consumers and businesses practice proper debt management and prevents future occurrences of the same severe debt problem.

It was as if traffic officers were investigating why a particular intersection had so many accidents. Since they have no influence over drivers, they alter the intersection's signs and signals to prevent further accidents. The same situation occurred during the creation of the new bankruptcy law. The government examined the existing law to determine which portion was susceptible to abuse and modified that portion to make it more effective. Changes have been made to ensure that those who register for bankruptcy are truly in need.

The new bankruptcy law specifies the minimum income and eligibility requirements for individuals and businesses. It stipulates that those who petition for bankruptcy must undergo credit counseling before filing. Thus, they will be educated on how to better manage their finances in order to get back on track, and they will be encouraged to refrain from abusing their credit. In situations where bankruptcy is caused by uncontrollable events, credit counseling is still beneficial because it teaches the individual or business owner how to avoid bankruptcy in the future.

The income threshold and the requirement for credit counseling were the two most notable changes in the new bankruptcy law, but many other provisions were also altered. Only legal counselors and attorneys are aware of these changes, so those who intend to file should first consult with a qualified counselor or attorney in order to better comprehend the new law. They should not rely solely on those who have filed tax returns in the past, as they may be unaware of the changes.

Those in dire straits should consult with an attorney who is familiar with the new bankruptcy law. Most attorneys offer free consultations so that clients can determine if they are eligible to file for bankruptcy and which Chapter is best suited for their particular case. They will even know whether or not filing is their best option. If so, the attorney will recommend the next action until the individual or business achieves the necessary financial recovery.""

" - https://www.affordablecebu.com/

Please support us in writing articles like this by sharing this post

Share this post to your Facebook, Twitter, Blog, or any social media site. In this way, we will be motivated to write articles you like.

--- NOTICE ---
If you want to use this article or any of the content of this website, please credit our website (www.affordablecebu.com) and mention the source link (URL) of the content, images, videos or other media of our website.

"Are You Familiar with the New Bankruptcy Law? If you intend to file, you must read this!" was written by Mary under the Finance / Wealth category. It has been read 175 times and generated 0 comments. The article was created on and updated on 03 June 2023.
Total comments : 0