In 2005, Congress passed the Bankruptcy Abuse Protection and Consumer Protection Act which put stricter requirements in place to file for personal bankruptcy. Some of these requirements include mandatory debt counseling before filing and completion of debtor education program after filing and income limitations on filing under Chapter 7. Depending on the amount of money you have, your current income and your personal circumstances, you may not be allowed to file for Chapter 7, which wipes out most of your unsecured debts. Instead, you may be required to file a Chapter 13, which requires you to enter into a payment plan. Before filing, it is important that you speak with someone experienced with the bankruptcy laws so that you will have a better idea of what to expect when you file.
For more information on filing a Chapter 7 Bankruptcy, check out my article on 3 Signs it is time to file a Chapter 7 bankruptcy.
For more information on filing a Chapter 13 Bankruptcy, check out my article on 5 Signs that a Chapter 13 Bankruptcy can help you.
If you are ready to get out of debt, contact us or call us today at 320-2010. We will meet with you to discuss your situation and advise you on the best way to become debt free.