New Bankruptcy Law

The new bankruptcy law was put into place to help protect companies from consumers that would file bankruptcy and then run up credit again only to file again and again. The problem here is that bankruptcy is something that many people have to go through and often it is a must for digging out of debt. Yet these new bankruptcy laws can be limiting to those that do not know how to get around them and how to still file bankruptcy even with them in place. While you can still file, you will have to follow much more strict rules and regulations to do so, protecting you and protecting the lenders of the loans to you. Understanding the bankruptcy laws that are new is important and necessary to anyone that has credit today.

What Has Changed?

For those that are considering bankruptcy, new laws have been put into place to limit how, who and when you can file. These new 2005 bankruptcy laws are meant to provide additional protection, but don't rule out filing. You must now work through credit counseling. New bankruptcy laws require that you spend some time trying to get through the debt through a program like consumer credit counseling. You must do this if you have credit cards. New bankruptcy laws require this so that people filing have made a good solid attempt at paying off what they owe. You are limited to working to a very close deadline, too.

You will need to have an attorney explain new bankruptcy laws to you and then follow a specific course of action to filing. If you miss deadlines or you do not hold up your end of the agreement, you can not file. More so, you need to realize that you can't continuously file over and over again. The new Chapter 7 bankruptcy laws requires that you actually work through Chapter 13 first, or the restructuring of the debt before you can write off that debt altogether.

The new bankruptcy law affects everyone that has any amount of debt. The fact is that these new loans will require you to follow a much stricter course of action that takes time to work through before you can apply for bankruptcy altogether. The benefit here is that you can't simply write off what you borrow but you have to work on paying it down. Good or bad, you'll have to learn these new laws.