The Legal Facts About Bankruptcy

The Legal Facts About Bankruptcy

The Legal Facts About Bankruptcy

If you happen to fall in a situation of bankruptcy wherein you are unable to pay off your a debts, a seasoned attorney is someone you would need to gain back your peace of mind and to rearrange your finances. The Present Scenario Following the recession, every city has seen a rise in the number of bankruptcy cases. A government study found a surprising growth in the number of bankruptcy filings as a consequence of this recession. According to a report by the National Bankruptcy Research Center, personal filings went up by 34 percent in January 2009 as compared to January 2008. According to the American Bankruptcy Institute, consumer bankruptcies went up by 11% in the first three quarters of 2010 in spite of added costs and a longer filing process. According to the ABI, over 1.16 million consumers filed from January to September, and the number is expected to reach almost 1.6 million by the end of the year. Role of an Attorney Debts could pile up from unmanageable credit cards, medical bills, a mortgage, a car loan, or other sources. All you need to do is to manage the finances better from your past with a help of a lawyer or an attorney. Add to this the fact that debt collectors make things more difficult by citing numbers worse than they actually are. Your bankruptcy lawyer is one who will make you feel safe from the allegations and help you steer through troubled times. Also, your attorney is bound to help you with the filing of the case after the six month counseling period. Means Test: The Qualifying Tool When bankruptcies went to a very high extent, the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) introduced the means test, an extra step to determine whether consumers qualify for a Chapter 7 or Chapter 13 bankruptcy. With the means test, debtors who have enough income to make regular payments are instead made to file under Chapter 13, which puts them on a repayment plan of three to five years. During this time span, they are asked to make payments to a bankruptcy trustee. A bankruptcy attorney will help you to determine how you should go about the test and subsequently qualify it.

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