Can I still file for bankruptcy with a Kildeer bankruptcy lawyer? Yes, you can still file for bankruptcy under the current law. The laws were changed October 17, 2005; however, you can still file under current bankruptcy laws.
The overwhelming majority of people that were able to file prior to the bankruptcy law change are able to file today. The requirements have gotten more difficult and there are certain things that you need to provide to your attorney and to the court prior to filing; however, the availability of the Fresh Start Law still exists.
Prior to the law change the credit card industry had a real strong lobby upon Congress. The credit card lobby basically wanted to cut down on the number of bankruptcy cases that were filed throughout the country. The credit card lobby thought that if they changed the bankruptcy laws they can force more people into a Chapter 13 which would repay a portion of the debt. What the credit card company lobby did not realize is that people really don’t have the ability to repay their debts when they need a fresh start.
The bankruptcy laws changed but they did not make it impossible to file. One of the major changes to the new law was the credit counseling requirement. Credit counseling is a one-hour session that has to be done within an approved credit counselor prior to filing Chapter 7 bankruptcy or Chapter 13 bankruptcy.
The credit counselor is basically going to interview you as the debtor and ask you certain questions about your assets, your liabilities, your income and your expenses. The credit counselor is going to tell you about some non-bankruptcy alternatives such as a debt settlement plan or working out a deal with your creditors.
The hope of the credit card lobby was that people would go to credit counseling and they would opt to not file bankruptcy. The credit card lobby thought that if they can get people into a debt settlement program that people would prefer to repay a portion of the debt so that they didn’t have the tarnish or the stigma of a bankruptcy filing on their record.
As you could imagine, people have still opted to file for bankruptcy as the best way to end their debt. It was completely short-sighted on the part of the legislature to think that people had the ability to repay their debt. It was debt relief that people wanted from the start. A good bankruptcy lawyer can help you get a case filed.