You won't notice any laws which state you must have legal representation when filing for bankruptcy, but it's ordinarily a good idea to have a specialist in your corner. People considering filing for bankruptcy will be much better served by contacting a qualified and experienced bankruptcy lawyer, who is well versed in the new laws associated with federal bankruptcy. A number of the laws are now being transformed, due to changing times. Most frequently, the changes have allowed people who find themselves declaring bankruptcy to protect their assets. But, these modifications also carry with them many additional responsibilities for the individual.
Before wide ranging changes were made many years ago, people could declare bankruptcy, go through the court proceedings and walk away free and clear. However, this process allowed them the opportunity to improve their personal debt and do everything once again seven years later. There was no requirement for them to learn improved financial management and no motivation to take control of their financial lives.
Now, individuals looking to declare themselves bankrupt are instructed to attend two separate classes on financial management. They must attend one just before they file and one prior to the final discharge of their personal bankruptcy, to help them control their spending habits. Courses they take must have been authorized by the court to confirm the classes were not established for participants to merely go through the motions to satisfy the court’s requirements.
Lots of the bankruptcy code changes were initiated by the lobbying initiatives of creditors, who often miss the opportunity when a person files for bankruptcy. Specifically, credit card issuers and medical providers, whose debts are usually considered unsecured debt and have no recourse in getting collection through collateral repossession, made an attempt to get new laws approved. While there were great changes in the laws, with the aid of a bankruptcy lawyer anyone can get their finances in order.
The latest changes make it quite difficult for individuals to file for Chapter 7 if they do have an income, which forces them into Chapter 13. In Chapter 13, debts they have accrued are repaid through monthly premiums handled through the federal bankruptcy court. It commonly requires 3 to 5 years for all of the debts to be repaid under this type of bankruptcy, but the debtor preserves ownership of their personal property.
Speak with a bankruptcy legal professional about your options, before filing for bankruptcy. A knowledgeable bankruptcy attorney can help be certain you're filing out the appropriate paperwork and filing for the most appropriate kind of bankruptcy.