As many people know, knowledge is power, and the best way to handle the bankruptcy roller coaster is to be informed. Know as much as you can about what you are about to do.
The last thing someone in a financial crisis needs is a suggestion that will cost more money, money that isn’t there in the first place. If you have decided to file for bankruptcy, you will need to know about new bankruptcy laws that can affect your decision.
Some of the most recent changes to the law may determine whether bankruptcy is even an option for you. The law requires that you meet with a debt counselor to examine your personal financial situation. Other changes you need to know about can include the following laws:
- You must pass a means test. This is a test to see whether you qualify to file.
- You may have to liquidate certain assets. In most cases, you can keep your primary residence but not additional property. You can usually keep your vehicles.
- You may need to meet certain income restrictions. This varies from state to state.
If, after exploring all the options, you find that filing for bankruptcy is necessary, you should hire an attorney. While some states allow you to file without legal representation, bankruptcy lawyers stay abreast of changes to the law, and they can help ensure you follow all the steps required to discharge or restructure your debt.
While it is not necessary to know all the laws, it is essential that you work with someone who does.