Many people have complained about the new bankruptcy law that was passed by Congress and signed by President Bush in the year 2005. I’ve heard some lawyers refer to it as bad for consumers or just a waste of time. Regardless of how you feel about this law, it is (at least for the moment) the law. You can buy, all means, petition Congress to change its mind, but for the moment we have to deal with the present statute.
So what does this law do with regards to bankruptcy? It is supposed to establish some additional requirements for anyone trying to declare bankruptcy. These include mandatory credit counseling and financial management courses, as well as a more rigorous examination of your income and expenses.
Some have claimed that bankruptcy is no longer available because of the new law, but this simply is not true. There are some additional obstacles put in place, but most people who would have qualified under the old law will still be eligible.
What about foreclosures? Some have voiced concern about the new bankruptcy law making it more difficult to stop foreclosure. You see, anyone who wishes to declare bankruptcy has to take a credit counseling course within 180 days before declaring bankruptcy. But what if you are facing foreclosure and need to file bankruptcy immediately in order to stop the bank from taking your house?
Well, in these kind of situations you can actually request additional time to complete your certification. You can actually be allowed to complete the credit counseling course within 30 days after declaring bankruptcy. There are usually local classes available as well as some over the Internet, so you shouldn’t have difficulty meeting these requirements.
There may be some things not to like about the new law, but you can still get through them if you take time to educate yourself about your options.