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In case you are considering filing bankruptcy for getting rid of your excessive debts, which have become hard to manage, you need to know that qualifying for a complete discharge might not be that easy especially if you have a higher monthly or annual income. This is because the New Bankruptcy Law Abuse Prevention And Consumer Protection Act of 2005 has brought about drastic changes in the entire bankruptcy processes.

In case you are considering filing bankruptcy for getting rid of your excessive debts, which have become hard to manage, you need to know that qualifying for a complete discharge might not be that easy especially if you have a higher monthly or annual income. This is because the new Bankruptcy Abuse Prevention And Consumer Protection Act of 2005 has brought about drastic changes in the entire bankruptcy processes. The new bankruptcy law imposes certain restrictions on probable bankruptcy filers as far as totally writing off debts is concerned. Here is some crucial information pertaining to the same.

As per the old bankruptcy laws, debtors had the option to choose between either chapter 7 or 13 bankruptcies. However, the new bankruptcy law prohibits some higher income debtors from filing a chapter 7. In addition, the new set of rules and regulations the below mentioned aspects have been made mandatory.

1. A bankruptcy filer needs to undergo credit counseling sessions from certified agencies within a period of three months from the date of filing a bankruptcy petition.
2. Debtors who have higher incomes need to take the “Means Test” in order to determine whether they have any disposal income left to repay the creditors.
3. When filing bankruptcy, it is very much imperative for a debtor to provide accurate information regarding the time required for repaying credit card debts by making minimum payments.

The new laws even require attorneys to vouch for the accuracy of information provided by clients. This means when you are out to file for a bankruptcy you need to be prepared to pay more fees to your bankruptcy lawyer since he is typically required to spend more time on your bankruptcy case.

The “Means Test” is one of the new requirements stipulated by the new bankruptcy rules for filing a chapter 7. The main objective of the “Means Test” is to verify whether the debtor has any additional income on hand after subtracting certain permitted expenses and debt payments to pave way for a monthly repayment plan under chapter 13.

Furthermore, in order to avail the list of exemptions provided by the state bankruptcy law, the bankruptcy filer should have stayed in the state for at least 2 years. To add to that, alimony and child support payments have been prioritized under the new bankruptcy laws. Considering all these intricacies involved in the bankruptcy petition filing process, it is always better to seek the services of a professionally qualified and highly experienced bankruptcy attorney.

Hence, to get more useful information on your personal or business bankruptcy options, it is hereby recommended to utilize the professional services of reliable as well as reputed online service providers such as BankruptcyOnly.

Fill Up Small Application Form to Filing Bankruptcy Under New Bankruptcy Law