The new bankruptcy law took effect on October 17, 2005. One of the most significant changes that this new law has brought about is that it has made the process of filing for bankruptcy a very laborious task. The role of the attorney has increased after the new laws relating to bankruptcy.
Detailed Documentation
First of all you will see that the documentation that is required to file for bankruptcy has increased manifold. The debtor is required by the new bankruptcy law to provide additional information relating to expenses and income. If you are spending more than the IRS allowance, you would need to submit a special circumstances document which provides in detail the reasons behind the extra expenditure. You would also need to submit a statement of accuracy along with the special circumstances document.
Lawyer’s Role
Lawyer’s role in a bankruptcy has also gone through lot of changes due to the new laws. Whether we are looking at corporate bankruptcy lawyer, business bankruptcy lawyer, or civil bankruptcy lawyer, the change is clearly visible. For starters the responsibility of ensuring checks is placed on the attorney/lawyer. When the attorney signs your petition, it is taken as certification of the fact that the attorney has inspected the petition. It also certifies that the petition is not an abuse of bankruptcy process. Furthermore, it also shows that the petition is in good faith.
The new bankruptcy law requires that the debtor go through credit counseling services within six months prior to filing the bankruptcy petition. The counseling has to be from a certified and approved credit counseling agency. This new requirement satisfies two purposes. First, it deters people from filing bankruptcy. Secondly, it ensures that people take an informed decision regarding bankruptcy. Once again it is the job of your attorney to ensure that you attend these credit counseling sessions.
As you can see you do have the aid of an online bankruptcy lawyer to help you in your bankruptcy case. The whole process is just too complicated for an individual to handle. The filing itself requires lot of research and paperwork. Furthermore, a single mistake in paperwork will mean the end of your case.
Many people argue that the new laws are harsher on debtors. The fact is that the new laws were designed to prevent the abuse of bankruptcy process. It was noted that many people and businesses would file for bankruptcy to avoid their financial obligations. If your case is genuine and bankruptcy is the only option for you, the present bankruptcy law will not be an impediment in your path.