The New Bankruptcy Laws

This law firm is very warm and welcoming in a difficult situation. Mr. Schwilm and his staff are very friendly and happy to answer questions and calm fears. The paralegal, Abby, even lent a sympathetic ear as I broke down in tears in her office. She was also willing to work with me and my crazy schedule between a full time job and children. I would highly recommend this law firm for any of the ...

New Bankruptcy Laws in NC

Charlotte Bankruptcy Attorney

Significant changes have been made to bankruptcy laws including who can file for certain types of bankruptcy. Since bankruptcy can be a very significant financial step, you need to be aware of such changes. A Charlotte bankruptcy lawyer would be a great asset in terms of understanding what these changes may mean for your financial situation.

Changes in the bankruptcy landscape include:

  • Some of those filing with a higher income may not be eligible for Chapter 7 bankruptcy
  • Individuals with too high of income will be required to repay at least part of their debt under Chapter 13
  • Credit counseling is mandated for all debtors prior to filing a bankruptcy case
  • Additional counseling on budgeting and debt management will be needed before their debt is eliminated

Before, filers were able to choose Chapter 7 bankruptcy for liquidation or Chapter 13 bankruptcy for repayment of their debt. Some of those with higher incomes will now be forced out of Chapter 7 and will have to file Chapter 13.

How can I tell which type of bankruptcy I am eligible for?

Your current monthly income is the measure used to determine your eligibility. It is measured against the average income for a household of the same size in your state. If your income is equal to or less than the median income, you should be able to file for Chapter 7 bankruptcy. Otherwise you will need to pass the "means test" in order to file for Chapter 7.

A means test is used to determine if you have the necessary disposable income to make payments for a Chapter 13 bankruptcy. Certain allowed expenses plus debt payments are subtracted from your current monthly income and if the difference is less than a certain amount, you will be allowed to file for Chapter 7 bankruptcy.

Our Firm is Committed to Helping You

Let our Charlotte bankruptcy attorney at Schwilm Law Firm, PLLC come alongside you to help you navigate through these changes to bankruptcy laws. Our firm is trained in bankruptcy law and we have an A+ grade from the BBB thanks to our dedication to client service. Call us today for knowledgeable legal advice!

Our firm is ready to help; contact us right away or fill out a case evaluation online!