The Law Office of Bruce C. Bridgman Articles Important Facts to Know About Bankruptcy

Important Facts to Know About Bankruptcy

By Bruce C. Bridgman  Feb. 28, 2011 9:12p

In 2005 some new bankruptcy laws went into effect; this was called the Bankruptcy Abuse Prevention and Consumer Protection Act (also known as the Bankruptcy Reform Act). The changes which were implemented made it more difficult for some to file a bankruptcy under Chapter 7, otherwise referred to as a straight bankruptcy. Following are a few of the specific changes:

Changes in Bankruptcy Reform

  • Consumers now have to pass a "means test" to see if they qualify for Chapter 7. The test evaluates a person's income versus expenses ratio and determines whether they have enough disposable income to make regular payments under a Chapter 13 bankruptcy. If they pass the means test, they qualify for a Chapter 7 filing.
  • The waiting period between filings has changed and there is now an 8 year waiting period for an additional Chapter 7 filing as opposed to the earlier 6 year waiting period.
  • Debtors must now attend credit counseling by an approved agency prior to filing for bankruptcy and debtor education before the bankruptcy debt can be discharged.

Even the Famous Have Filed

Even famous people can get into financial trouble and the following people declared bankruptcy, surprising as it may be.

  • Burt Reynolds
  • Mickey Rooney
  • Dorothy Hammil (Olympic Medal winner and ice skater)
  • Abraham Lincoln
  • Mark Twain
  • Walt Disney

Seek Competent Help

If you feel overwhelmed with debt and are considering filing bankruptcy in the Irvine or surrounding area, you should contact an Irvine bankruptcy attorney to help you. At The Law Offices of Bruce C. Bridgman, we are competent and highly experienced in handling bankruptcy and debt relief cases and can walk you through the steps to ensure it is done correctly. We can advise you as to what would be the best option for you based upon your current situation.We treat our clients with dignity and respect, realizing that personal financial matters can be a sensitive issue and we maintain confidentiality. We are here to help you lessen the burden and start creating a brighter and more stable future.

Contact an Irvine bankruptcy lawyer in our office to set up a free consultation.

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