Financial problems bankruptcy. like the ripples that radiate outward from a rock thrown into water. rarely are there one; and in general, such ripples disturb all aspects of life. Many studies have shown that in 2019. more people are living paycheck to paycheck, and more people. medical emergencies; or something else that is unforeseen.
Top Three Myths In 2019:
While there is not a one size fits all solution for everyone’s financial problems, and in many cases, financial problems are exacerbated by other factors, there are legal remedies, including that of Title 11 of the United States Code, otherwise known as the Bankruptcy Abuse and Consumer Protection Act (“BAPCPA”), or just the “Bankruptcy Code”.
While no one ever sets out to file for bankruptcy protection, the law is designed to allow people a fresh start, and to make much needed changes in their lives without constant financial pressure. And, while not perfect, the law when applied correctly can and does make positive changes in many people’s lives.
The Main Misconception That Has Arisen:
Bankruptcy is not a monolithic creature either, with differences arising under Chapters 7, 11, 13, and other sub-components. Generally, most of the questions involving bankruptcy revolve around Chapter 7 cases, especially after the law was modified in 2005.
Majority Of Their Debt Is “Non-Consumer”
This test also utilizes numbers from another portion of the government called the “national standards”, which set forth income amounts for household size based on geographic location. If this sounds somewhat complicated, its because it is somewhat obscure.
Having said that, the myth in this regard is that not all Chapter 7 filers must complete the means test. For parties for which a majority of their debt is “non-consumer”, the means test does not apply; a common example of non-consumer debt is tax debt.
Retain Essential Items During A Bankruptcy
The second myth is one that could the first myth, because it pre-dates the new law. in that people think they can pick and choose which debts to list in the bankruptcy petition. legal series of statutes (exemptions) to certain limits. loans and leases and vehicles can “re-affirmed” . meaning that as long as the Court approves the contract, and the potential.
Like the complexity of financial issues leading to bankruptcy. the bankruptcy code has many permutations itself. but contact an attorney. who can guide you between what is real and what is a dead end.
Contact our office today with any bankruptcy questions you may have.