Your initial meeting with a Bankruptcy Lawyer or Bankruptcy Attorney, should give the Lawyer an opportunity to assess your financial situation, your goals, and the options available to you. You should feel that you can communicate well with the Bankruptcy Attorney or Bankruptcy Attorney and have confidence that your matters are handled with competence and care. Ask the Lawyer how much of his or her practice involves Bankruptcy Law and what portion of the Bankruptcy cases are similar to yours. Note whether the Bankruptcy Attorney answers your questions and explains matters in a manner you can understand. Do you feel comfortable asking the Bankruptcy Lawyer or Bankruptcy Attorney to further clarify matters? Filing Bankruptcy is stressful enough without having to wonder if you understand what is happening.
Review the pricing structure of the Attorney services. Most Bankruptcies are done for a flat fee. Ask the Attorney what costs there are in addition the flat fee, and get the arrangement in writing.
MAIN CHANGES TO NEW BANKRUPTCY LAW
foreclose mortgage refinancing common questions legal information filing debt problems debt consolidation creditor trustee bankruptcy lawyers law firms new port richey hillsborough pinellas county pasco polk countiesThe Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 took effect on October 17, 2005. There are numerous changes that came about as a result of the new bankruptcy law:
Mandatory Credit Counseling
Anyone filing for bankruptcy must now undergo credit counseling and receive a credit counseling certificate through a program approved by the Department of Justice. Generally, you need this certificate at least 24 hours before filing bankruptcy. Therefore, especially if you are facing a foreclosure, make sure you obtain this certificate promptly.
Stricter Eligibility for Chapter 7 Filing
Under the new law, bankruptcy applicants who wish to file Chapter 7 bankruptcy must meet eligibility requirements under a “means test”. Under the means test, if your current monthly income is less than the median income in your state, you can file for Chapter 7 bankruptcy. This median income figure changes constantly, but our bankruptcy attorneys or bankruptcy lawyers can advise you of the current figures. If your current monthly income is above the median income and you can afford to pay $100 per month towards your debt (or $6,575 over a five year period), then you must file Chapter 13 bankruptcy.
Tax Returns and Proof of Income Required
In order to file either Chapter 7 bankruptcy or Chapter 13 bankruptcy, we must show, at a minimum, the last two years tax returns and proof of income for the last six months.
Fewer Automatic Stay Protections
People who file bankruptcy have generally been entitled to certain immediate protections from creditors, including most debt collection and lawsuit actions. This is called the Automatic Stay because creditors are automatically stayed or prevented from making collection efforts. Under the new bankruptcy law, some protections have been eliminated. Filing for bankruptcy no longer stops evictions, drivers license suspensions, actions for child support or divorce proceedings.
Priority Status for Unpaid Child Support and Alimony
Under the new bankruptcy law, persons owed unpaid child support and alimony take priority over other creditors. In a Chapter 13 bankruptcy, this means these persons are paid before any other creditor.
Mandatory Financial Management Education
At the conclusion of bankruptcy proceedings, but before any debt can be discharged, bankruptcy debtors must participate in an approved financial management education program. This can be completed by phone or on-line.
RE-ESTABLISHING CREDIT
One of the most commonly asked questions we receive is bow will filing bankruptcy affect my credit and what can I do to improve my credit after bankruptcy. After filing bankruptcy your credit rating could be affected, depending upon how bad or good your credit rating was before filing, but there are things you can do re-establish your credit. Here is a checklist of things to do after bankruptcy:
1. Employment-A steady work history, even part-time work, will help re-establish credit
2. Pull a credit report and make sure it accurately reflects the debts you included in the Bankruptcy. We provide a Credit Repair Service. It is not expensive and will improve your credit.
3. Apply for a secured credit card (if you are not eligible for an unsecured credit card) And make regular payments. You need to show a history, usually of about 18 months, of making on-time payments.
4. Open a savings account and make regular deposits. Do not bounce any checks.
5. Make sure that you make your house and automobile payments are paid on time if you retained these items after you filed bankruptcy.
6. If you apply for a credit card or loan to re-establish credit, make sure the organization reports these transactions to the credit bureau because not all organizations do so.
If you are interested in re-establishing your credit, please schedule an appointment to meet with one of our Bankruptcy Lawyers or Bankruptcy Attorneys who can further advise you on how to re-establish your credit after the bankruptcy.
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