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Changes to Bankruptcy Law - Intended to Hold Debtors Accountable

Changes to Bankruptcy Law - Intended to Hold Debtors Accountable
"""A few years ago, Congress resolved to take measures against the increase in bankruptcy filings, making it more difficult for businesses and private individuals to file for bankruptcy. The purpose of bankruptcy is to assist all individuals with financial difficulties who have lost control of their debts in resolving their financial issues. By declaring bankruptcy, these companies or individuals have the opportunity to start over.

In recent years, unfortunately, everyone has utilized bankruptcy laws to avoid paying debts and escape financial obligations. This excess has prompted Congress to pass stricter bankruptcy laws in order to safeguard creditors who are frequently harmed by a system that appears to favor debtors. Therefore, new laws have been enacted to compel debtors to fulfill their financial responsibilities and prevent them from using the law to avoid payment.

Even though bankruptcy laws have become more stringent, in most cases the law still permits a discharge of all dischargeable debts if bankruptcy is the only option. The increased difficulty of complying with the law's requirements may discourage people from filing for bankruptcy. As with Chapters 7 and 13, any assistance provided by the law following a bankruptcy filing may be more demanding than actual debt repayment, resulting in a dire financial situation.

Unfortunately, the indiscriminate use of bankruptcy by creditors to avoid paying their debts has resulted in stricter rules and more difficult debt relief options. If you decide to file for bankruptcy, there are now additional requirements that you should examine thoroughly before deciding. In many instances, the counsel of a bankruptcy attorney can assist you in selecting the appropriate bankruptcy option or other debt repayment alternative.

Before you can file for bankruptcy, you will be required to receive counseling services if you choose to declare bankruptcy. This counseling should also inform you of alternatives to bankruptcy. These new laws pose a problem for debtors and bankruptcy attorneys, who must collect additional information in order to file for bankruptcy. Other financial requirements are also necessary; therefore, a bankruptcy attorney is your only option for gaining a comprehensive understanding of the bankruptcy filing requirements. If you do not follow the procedures precisely, you risk incurring penalties, which is something you want to avoid, particularly if you are already in debt.""

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

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"Changes to Bankruptcy Law - Intended to Hold Debtors Accountable" was written by Mary under the Finance / Wealth category. It has been read 63 times and generated 0 comments. The article was created on and updated on 02 June 2023.
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