Orange County Bankruptcy Attorney
Bankruptcy Reform Act
In 2005, the Bankruptcy Reform Act was passed and made big changes in laws regarding the filing of bankruptcy. You can read the U.S. Department of Justice information by clicking here. Bankruptcy filing can still be done, but is more complex and has changed rules in several areas. There is much misinformation about the new bankruptcy laws, and you can rest assured that at the Law Offices of Joseph M. Tosti, the legal team is still able to qualify 80% -90% of those we could have filed for prior to the new laws. Some of the changes that are a result of this law include:
Credit Counseling is Required
You must get help from an approved credit counseling group. This credit counseling has the purpose of assisting consumers to find other alternatives to bankruptcy. In some cases, this has been effective as the individual finds that they can negotiate down their debt directly and avoid filing bankruptcy. In other cases, there really is no other solution for the consumer other than pursuing bankruptcy filing. In these cases, you should contact an Orange County bankruptcy attorney to assist you.
More Complex Filing
The information and requirements on filing bankruptcy have become more extensive and complex. If you own property or have assets, it may be difficult to attempt filing on your own, and you may choose to get the assistance of an attorney. At the Law Offices of Joseph M. Tosti, the legal team has helped countless individuals with the new requirements on filing bankruptcy. Other types of bankruptcy assistance firms have very strict rules and no longer are now closely regulated. This has been a helpful change for consumers, as often what appeared to be a "cheap" alternative turned out to be very expensive prior to the Reform Act.
Prohibited Advice
Attorneys are prohibited from giving certain types of advice to clients, particularly any advice that advises them to take on more debt prior to bankruptcy. This advice was never good advice, as when trying to relieve debt, you do not want to take on more. If you have run up your credit cards just prior to bankruptcy filing, you will likely not be allowed to "discharge" those debts, and it is never advisable to do so.
Increased Time Between Filings
The time between bankruptcy filings has been increased to 8 years. If you filed a Chapter 7 Bankruptcy in the past, you must wait 8 years before being eligible to file another Chapter 7.
Protecting your Home
There are new rules about what you are allowed as exempt which varies from state to state. If you move to a state with more exemptions, there are certain restrictions you will now face. The amounts allowed as exemptions on your home can be discussed with you personally by a bankruptcy attorney from the Law Offices of Joseph M. Tosti.
The Means Test
You will be required to take a "means test". This test is written to determine whether you are eligible to file for Chapter 7 bankruptcy. The test is complicated and it is recommended that you get help from a bankruptcy attorney from the Law Offices of Joseph M. Tosti to assist you in filling out the test. If you fill it out incorrectly, you may be suspected of abuse. If you do not qualify for Chapter 7, you may qualify for Chapter 13 bankruptcy, in which a plan is submitted to pay off your outstanding debt within 3 - 5 years. A lawyer from the firm can assist you in drafting the plan according to your actual income.
Contact the Law Offices of Joseph M. Tosti
Filing bankruptcy has become more complex and difficult since the changes in the law. These new laws were written to stop the abuses that had been occurring in the past. However, it is still possible to file bankruptcy, but it is recommended that you contact a bankruptcy lawyer from the Law Offices of Joseph M. Tosti to assist you and to advise you of your options in debt relief and bankruptcy actions.
Contact an Orange County Bankruptcy Attorney from the Law Offices of Joseph M. Tosti if you are considering filing bankruptcy in Orange County, California.