Home » Articles » Finance / Wealth

New Bankruptcy Laws, Seek Professional Help When Filing a Case

New Bankruptcy Laws, Seek Professional Help When Filing a Case
"The Bankruptcy Regulations have undergone a makeover and have been updated with more stringent protocols regarding the fundamentals of registering bankruptcy cases. The new bankruptcy rules emphasize the importance of professional guidance in the case of filing for bankruptcy, as it can eliminate a number of the most common mistakes made by debtors when attempting to discharge their debts.

The Bankruptcy Code contains two chapters that provide a protective shield for debtors: Chapters 7 and 13. Every chapter has a unique set of requirements. The debtor who petitions for Chapter 7 bankruptcy must comply with certain cash flow requirements. The law specifies that he must earn less than the median income of a spouse and offspring of the same size in the state.

If his salary exceeds this median financial flow, he may qualify based on certain criteria. Given that this chapter includes asset liquidation, the bankruptcy petitioner should seek legal advice from a professional who can assess his financial situation and recommend the best course of action.

As soon as a case is filed, the Bankruptcy Laws and regulations also suspend the creditors' rights to pressurize or harass the debtor for repayment. The court makes the ultimate determination regarding the status of your debts and which must be paid back and which can be completely discharged. The most recent bankruptcy laws stipulate that non-exempt property may be liquidated by the bank or mortgage loan company in order to pay back the loan companies in full.

This accentuates the significance of expert intervention, as filing for Chapter 7 bankruptcy without the proper knowledge can result in the liquidation of the debtor's assets. If retained, a certified bankruptcy attorney can provide advice to the debtor and submit his case under Chapter 13, which provides him with additional time to repay back the debts.

If he has a daily income, he can repay the funds through a periodic payment plan using his income. This may immediately enable him to obtain an automatic stay on potential adverse events, such as foreclosure or repossession.

The most recent bankruptcy regulations have been in effect since 2005. Due to their youth, it is difficult for the average person to comprehend them thoroughly. Here, the role of a professional attorney becomes crucial, as he is up-to-date on all recent developments and can guide you effectively with your best interests in mind.""

" - 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.

"New Bankruptcy Laws, Seek Professional Help When Filing a Case" was written by Mary under the Finance / Wealth category. It has been read 125 times and generated 0 comments. The article was created on and updated on 03 June 2023.
Total comments : 0