subject: Bankruptcy Lawyer: What They Can Do For You [print this page] Bankruptcy Lawyer: What They Can Do For You
A bankruptcy lawyer will help you to know everything that is going on from legal advice to all options available to help you make the best choices possible through the bankruptcy process once you file. They will negotiate with creditors for you and help keep them off your back. They will also help you to formulate a payment plan if you are required to pay off a certain amount of your debt.
Since the year 2005, new rules concerning bankruptcy have come into effect. When you file for bankruptcy now, the process takes much longer due to required tests you must go through to determine how much, if any, of your debt can be wiped away. Because of all these extra steps that must be taken and the extended length of time it requires, bankruptcy lawyers are now more expensive than they were before 2005 when the new rules took place.
According to the new rules, you must qualify for bankruptcy by proving that you do not have a higher income than the median for a household your size. If you do make more than the median, you must then go through what is called a means test. A means test is a test to see how well you are living within your means. It is decided (not by you) a reasonable amount you should be spending each month to live. Where you live, your bills, and what you own is all taken into account. Any money you should have left over after that is considered your disposable money and they may have you use that money to pay off some (if not all) of your debt. Therefore, you may have to live on less in order to pay off some of your debt because if some of your expenses are looked upon as unnecessary, they may have you go without the unnecessary items or services in order for you to pay your debt.
