Filing for Bankruptcy and Its Qualifications
Many people experienced overwhelming financial problems when the United States of America experienced the Great Depression a few years ago. Many businesses and individuals decide to file for bankruptcy as many debts were left unpaid. It is a good thing that the government was fast enough to work on laws that will help people in their bankruptcy problems. In Arizona, many people have been thankful for the that is offered by a New Reform Bill. Different situations can be helped by this bill like predatory lending practices and is said to be one of the toughest financial reform ever since the Great Depression.
Bankruptcy is a word that most people associate as negative. It may be no wonder why filing for bankruptcy is quite uncomfortable for most people. But this should not be the case as financial advisors will tell you that filing for bankruptcy will be the best options for your overwhelming debts. But of course, filing for a bankruptcy is not easy as there are things you need to be careful about.
Income is very important in terms of filing for bankruptcy as it will determine what bankruptcy chapter will qualify for your situation. In case you did not know, a bankruptcy will not make you be free of the responsibilities of what you owe. Then again, it will make into account that you can pay your debts through a certain medium approved by the court. Your income will then go through a means test to calculate for a disposable income. then, the appropriate chapter of bankruptcy that will be best for your situation will be known from the results of your disposable income.
Aside from one’s income, another important factor one needs to consider is a certificate from credit counseling. This means that an individual filing for bankruptcy must need to attend credit counseling. Being current on one’s income taxes is also another requirement. Furthermore, meeting with the creditors will also be part of one’s filing for bankruptcy. This just means that you really have to be prepared on what may happen during the course of your bankruptcy petition.
This is just a run down on the requirements you need to have in order to file for a bankruptcy. Still, there may be additional requirements as it is always dependent upon your situation. This is actually the reason why an Arizona Bankruptcy Lawyer is being sought out by people who have been having financial problems in Arizona.
Steve Anderson is one of the lawyers of Pew Law Center. Arizona Bankruptcy Lawyer help people get the protection and debt relief they need under federal bankruptcy law.