The California bankruptcy attorney team at the Feldman Center has been around quite a long time, and as such we have witnessed various changes to the United States Bankruptcy Code. In 2005, under the Bush Administration, the bankruptcy laws in the United States were radically changed, and few people fully understand exactly how and why those changes work.
Most California residents are under the impression that filing for bankruptcy is no longer an option because of the 2005 bankruptcy law changes, however that is COMPLETELY UNTRUE!
In most cases, it is actually easier to qualify for Chapter 7 liquidation bankruptcy and Chapter 13 bankruptcy under the new laws than under the old laws. Lenders, creditors, collection agencies and others are trying to cloud the truth and prevent people from realizing what their real options are, which is why the Feldman Law Center fights to provide accurate, helpful information to consumers. In the years since the bankruptcy laws have changed, the filing levels for bankruptcy have not gone down, and in many cases have actually increased.
Bankruptcy Filings
The Feldman Law Center employs a highly qualified and highly skilled California bankruptcy attorney team which aggressively represents our clients in and out of bankruptcy court. Since the 2005 bankruptcy law changes, we have faced NO significant resistance in bankruptcy filings. Our clients are receiving Chapter 7 bankruptcy protection and Chapter 13 bankruptcy protection with NO PROBLEMS, and in many cases some of the red tape has been removed.
Major Changes to Bankruptcy Law
The following are some of the major changes brought about by the New Bankruptcy Laws:
Mandatory Credit Counseling – Prior to filing for bankruptcy in California, you will now have to complete a credit counseling course, either online or over the phone. The cost of these courses ranges from nothing to about $50 and will be given free of charge if you do not have the ability to pay.
Means Test – This is an 8 page test is designed to measure whether or not you are eligible for bankruptcy filing. This test actually removes some of the discretion bankruptcy judges have by measuring your income from the past 6 months, as well as expense deduction. Most people qualify using this test, which has been one of the major change the new bankruptcy laws brought.
Tax Returns – In a California Chapter 7 bankruptcy filing, you would be required to submit your tax return from the previous year (but only if you filed a return). If there is no return, a declaration is submitted instead. In a California Chapter 13 bankruptcy filing, you would be required to submit tax returns from the last two years, and possibly the last four years.
Mandatory Debt Management – If you are filing for bankruptcy, you would be required to undergo a debt management course (just like the credit counseling) after the bankruptcy case is filed. Debt management can actually be extremely helpful for people with serious debt problems, and this has been a great help to people facing bankruptcy.
These and other new developments are important to know about and learn about, and the team at the Feldman Law Center can assist you. Contact us today. |
