The New Bankruptcy Law and You

Before October 17, 2005, countless people made sure that their bankruptcy case was in the courts before the new law took place. Bankruptcy has always been used to absolve people of debt and help them build a new life that offers the possibility of financial stability. But, since the new law went into effect, people have become so wary of filing for bankruptcy that they are writing it off altogether. Unfortunately, this isn’t the smartest thing to do. Trying to dig yourself out of debt on your own might just end up making things worse in the long run. The good news is that you can still file for bankruptcy- it’s just going to take longer than it would have before and there will be more paperwork.

One of the major changes instituted by the new law was the establishment of income. The income limit went up to $54,000 for a family of two, $58,000 for a family of three and $66,000 for a family of four. For larger families, it is $6,300 per additional member.

Basically, if you earn more than $40,000 per year and are thinking about filing for bankruptcy, you are going to be met with tougher requirements than ever before. But, don’t let this deter you. A complete and total discharge of your debt is still possible, you just have to be prepared for the mountains of paperwork and documentation that you’re going to have to provide.

To get started, contact a reputable bankruptcy attorney to determine if filing is the right decision for you. Your attorney will be able to go over the new law in detail with you and answer any questions that you might have.

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