The new law mandates several new requirements. First is a means test, which determines whether you have sufficient disposable income, after deducting certain permitted expenses and required debt payments, to make Chapter 13 plan payments. Prior to the enactment of this law, a consumer could register for whichever chapter they deemed appropriate. Prior to filing for bankruptcy, filers are now required to enroll in credit counseling. This counseling is intended to help you determine whether you need to file for bankruptcy or whether an informal repayment plan could get you back on your feet financially. Even if it is apparent that a repayment plan is not feasible or that you are facing debts that you find unfair and do not wish to pay, counseling is required.
The new law imposes additional requirements on attorneys, including the requirement that they physically vouch for the accuracy of all information provided by their clients. As a result of the new requirements of the law, legal fees have increased, and some attorneys who specialized in this area have moved on to other disciplines, making it more difficult to find competent representation.
A novel aspect of bankruptcy stipulates that the IRS determines the permitted expense amounts, not the individual's actual living expenses. Individuals with a higher standard of living than the IRS will be required to survive on less and pay more towards their debts as a result of this change.
With fewer debt relief options available to consumers, companies such as NegotiateMyDebt.com [http://www.Negotiatemydebt.com] have flourished by offering consumers a new avenue to pursue. Debt settlement and management programs have helped tens of thousands of people avoid bankruptcy and return to a normal life. Consumer debt has spiraled out of control and shows no sign of abating; debt relief companies may be a solution for those with few remaining options.""
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