South Florida Bankruptcy Lawyers

2005 Bankruptcy Law

A new bankruptcy law went into effect in 2005 that has had some influence and impact on bankruptcy proceedings across the country. It has had the biggest effect on the income caps for who may file for Chapter 7 bankruptcy, as well as the scale for judging who is eligible.

Higher Incomes

Individuals with higher incomes are no longer allowed to use Chapter 7 since the new law went into effect. These filers now have to repay at least some of their debt by filing under Chapter 13.

Counseling Requirements

All debtors, regardless of income level, are now required to get credit counseling before they can file a bankruptcy case. The counseling must be done with an agency approved by the United States Trustee’s office. The idea behind this is that it provides potential filers with more information to discern whether or not they really need to file for bankruptcy or if they can just participate in an informal repayment plan.

Additional Counseling Requirements

At the end of a bankruptcy case filers are also required to attend a personal finance management counseling session. Proof of attending this class must be submitted to the court in order to receive a bankruptcy discharge wiping out debt.

If you or someone you love is facing a financial crisis you need the right representation to guide and help you through your unsure times. Consider filing for bankruptcy as a means to help you gain back control of your finances.

A South Florida Bankruptcy Lawyer Can Help

Contact the South Florida bankruptcy lawyers of Eric N. Klein and Associates, P.A. at 561.353.2800 for an initial consultation. We want to help show you the path towards financial freedom.