If you find yourself in the unfortunate position of having to file bankruptcy in RI, you will need the assistance of a qualified bankruptcy attorney as the laws have changed substantially.
The new bankruptcy laws are stricter, making it more difficult for some people to file. In particular, those individuals who may fall into a higher income bracket will not be able to file a Chapter 7 Bankruptcy, and instead will have to file a Chapter 13; which will require them to work out a repayment plan with the court for at least some of their debt.
Debtors who pass the 'median income' rule; which determines if your income falls within the median guidelines for your state of residence, as well as 'the means test'; which will show whether you will have enough income, after specific permitted expenses, to pay toward a Chapter 13 plan.
If you fail the means test, you will be allowed to file a Chapter 7 petition in most cases, however, contact your bankruptcy attorney with any questions you have regarding this determination process before taking any action.
Under the new plans all debtors are required to complete credit counseling before they will be permitted to file their case, and again after the case is heard, before they will obtain a discharge. The counseling service is approved for referral to you by the United States Trustee's office, and will help you decide if bankruptcy is in fact the only way for you to proceed with your situation, or if you have other avenues of repayment open for consideration.
Although, debtors are not required to accept any repayment plans offered by the counseling agency, whether a proposed repayment plan is acceptable or not, all debtors are required to complete counseling. You will need the certificate provided at the end of the counseling to begin the process and file your bankruptcy petition.
Some factors for consideration and not necessarily pertaining to the new laws per se, are that bankrupcty attorneys may now be more difficult to locate and more expensive to hire as the work involved in the filing of the petitions has increased substantially from what was previously required under the old laws.
In addition, a lawyer representing you in bankruptcy is now personally responsible for the validity of the information that you provide on the documents that are filed with the court. Meaning that, if you are dishonest or fail to disclose certain aspects of your financial situation to your lawyer, whether they ask you or not, they will be responsible and risk losing their license to file bankruptcy petitions with the court.
Real property is now calculated at replacement cost rather than auction value, placing debtors in danger of having their property sold to pay debts.
If you have exhausted your available financial means attempting to pay down your debt and are now in a dire situation, contact a RI bankruptcy attorney now for more information.
-------------------------------------------------------------------Newport RI Real estate Lawyers handling real estate closings for commercial and residential conveyance and refinancing, Purchase and Sale negotiation and drafting, title issues, tax matters, and all complex zoning and real estate law issues. As Personal Injury Lawyers we also handle all matters of personal injuries. Contact our office at (401) 847-7500 or visit the website at Miller, Scott and Holbrook for more information.
No comments:
Post a Comment