A bankruptcy attorney can clarify the new regulations and laws that must be adhered to. In addition, there are residency requirements, financial counseling requirements, and rules regarding cash loans and the purchase of costly items within the previous 60 days. This may be quite overwhelming for the typical consumer. This is why a lawyer can be of great assistance.
Included in the required qualifications is the ability to calculate how much is spent on sustenance and living expenses. The typical monthly expenditures for both cannot exceed $1100. If there are more, a Chapter 7 filing cannot be made. A """"means test"""" is also used to calculate earnings minus food and lodging.
Upon meeting the requirements, a trustee is appointed and all non-exempt property is sold. The definitions of non-exempt and exempt property vary from state to state. A bankruptcy attorney will be aware of what is exempt in their state of practice.
In some jurisdictions, homes and property are protected and cannot be liquidated to satisfy debt. This is because the United States Government Bankruptcy code states that a debtor may keep some or all of their property. There are nineteen categories of debt that can be discharged in Chapter 7 bankruptcy. Credit cards, personal loans, leases, repossession deficiencies, negligence claims, medical expenses, judgments, and tax penalties older than three years fall into this category.
Due to the fact that Chapter 7 bankruptcy discharges or renders a debt uncollectible against the debtor, many individuals chose to file for Chapter 7 bankruptcy. This is the reason why the new laws were implemented. Numerous individuals who had amassed debt by acquiring more and more credit filed for Chapter 7 bankruptcy to eliminate their debt. This is another reason why resident requirements were incorporated into the modifications. Currently, the law requires the debtor to have resided in the state where he is filing for at least two years prior to registering for bankruptcy.
Although some individuals believe they do not need a bankruptcy attorney, this is not always the case. When petitioning for Chapter 7 bankruptcy, numerous forms must be completed and submitted. The attorney can perform the duty of ensuring that the forms are filled out correctly. In addition, there are deadlines that must be met, and if you cannot make a court date, your attorney can represent you. A bankruptcy attorney can also prevent bill collectors from attempting to collect after the filing of bankruptcy.
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