Recently, Congress has made changes to Chapter 11 bankruptcy law. This new law barely resemble the previous laws, and these changes are relevant for business owner or manager considering filing for bankruptcy. They make the bankruptcy a little more time-consuming and a little tougher.
Just be aware of the new changes, and you should prepare to do what it takes to file for the bankruptcy that you need to restart your financial life.
Let me first cover the changes with personal bankruptcy laws.
The main addition that you will hear about the most is that of a test for those filing for bankruptcy. Now you will have to answer dozens of different questions on the qualifying test, which will analyze many different parts of your business to find out whether bankruptcy is necessary for you. It considers your living expenses with your income and your debt. All of these are in comparison to your state’s average, to see where exactly you stand with lenders. If the courts decide that you are bankrupt but you don’t have it off that bad, you may get a chapter of bankruptcy that only partially dissolves your debts.
More Changes to Chapter 11 Bankruptcy Law
The new reforms also consider your spending habits in comparison to decent living standards. Do you spend loads of extra money and live lavishly while your debts pile up, or do you live below standard to do your best in paying off debts? These play a huge role in deciding whether you have approval for bankruptcy, while previously they were insignificant details. Also, the courts may require you to attend courses on how to manage your money before you get approval for bankruptcy.
All of these have combined to make a bankruptcy procedure that does its best to ensure the people who need bankruptcy will get it. However it is no longer an easy way out for those who could technically still pay their bills. This is great news for anyone genuinely in need of debt cut, since previously they may have been choked out by those who could still pay their debts if they just adjusted to a different lifestyle. If you are in need of filing for bankruptcy, the changes in the chapter 11 bankruptcy laws and personal bankruptcy laws will bode well for you.
Find out more about Chapter 11 bankruptcy and your business here...
http://www.chapter11bankruptcy.biz/changes-to-chapter-11-bankruptcy-law.html
