A Guide To Loveland Chapter 13 Bankruptcy Attorney

A substantial number of Americans have recently used Chapter 13 bankruptcy to avoid foreclosure and pay off debt. Many people are questioning whether the changes to the bankruptcy laws were more for the purpose of allowing a bankruptcy attorney to charge more for bankruptcy cases because of the increase of Chapter 13. Some have gone so far as to claim that attorneys were directing clients away from Chapter 7 bankruptcy and toward Chapter 13 bankruptcy in order to charge more fees. While it may sound suspicious, I doubt a bankruptcy attorney would go to such lengths to make a little additional dollars. A Chapter 13 bankruptcy is a lengthy process in which the client is tethered to the bankruptcy attorney’s hip for up to five years. This does not appear to be a pleasant experience for the attorney.Do you want to learn more? Visit  Holland Law Office – Loveland Chapter 13 Bankruptcy Attorney

Since the 2005 revisions to the bankruptcy legislation, a person filing bankruptcy must meet certain criteria in order to file Chapter 7. The means test must be passed in order to file Chapter 7. Essentially, the means test divides the previous six months’ income by six and multiplies it by 12. This will offer you the average annual income of the person who is declaring bankruptcy. This figure will be compared to the median income table for the state in which the individual lives. Most people are unaware that the bankruptcy court considers household income rather than individual income. So, even if one is filing separately, if the person has a working spouse, their income must be recorded as well. But that’s not all; even if the person’s income is below the median, they must also fill out an income and household cost report. This is where the person will list all of their monthly expenses, such as rent, food, clothing, and any medical costs, among other things. Payments to creditors are not allowed to be included as costs. If a person’s disposable income exceeds $170, they may be obliged to file for Chapter 13 bankruptcy. This is not due to the bankruptcy attorney’s negligence; rather, it is due to bankruptcy legislation. Many lawyers will make an effort to ensure that the client realises the significance of including ALL of their expenses. This is a problem area where many do-it-yourself bankruptcy filers fall short and wind up with a bankruptcy trustee attempting to force them into a Chapter 13 bankruptcy.