It is never a good idea to file for bankruptcy without having your financial situation thoroughly investigated by a licensed and experienced professional.
New Bankruptcy Laws have been drafted by the Federal government, and they are stringent. They dictate that all persons above the median income bracket who file are required to pay over to their creditors all their income that lies above a certain threshold that is predetermined by the Internal Revenue Service. This threshold represents what is considered the most essential expenses for any household as dictated by the IRS, and must be calculated based on your average monthly income over the six-month period before filing.
Two bankruptcy paths may be followed: Chapter 7 and Chapter 13, and most filers prefer to make payments based on the Chapter 7 stipulations. However, in order to qualify for this preferred path, you must first pass the Means Test, which ascertains whether your disposable income (after subtracting certain essential expenses) is enough to cover payments according to the Chapter 13 plan. If this is shown to be the case, then you may end up with a bankruptcy plan that you cannot live with.
Letting our experts handle your filing is your best option for securing the most satisfactory method of living out the next few years. For Hurricane Katrina victims, we may be able to locate areas of relaxed legislation that you may not be able to detect yourselves. Plus, our knowledgeable specialists have the experience that allows them to determine the best way to ensure creditors do not have access to your most essential property. Don’t let bankruptcy get the best of your life’s work.