Bankruptcy Law Attorney : The New Law Changes

If your business is going through a tough phase and you are planning to hire a bankruptcy law attorney to help you find the best way to come out of the difficult situation, it is very important for you to make sure that the lawyer you are hiring, is well aware of the certain law changes that have come into effect recently. When it comes to business cases, there are two major changes that you have to take care of.

The first major change is that now it has become mandatory for both individuals as well as businesses to pass a means test while the second major change is that both individuals and businesses must avail the services of a government approved credit counselor at least six months before filing for bankruptcy.

The Reason Of The Inclusion Of The New Laws

There are specific reasons why the new laws have been included in the bankruptcy code. Before the inclusion of the new laws, the chances of bankruptcy frauds by debtors and bankruptcy attorney were much higher. Earlier businesses used to file for bankruptcy in order to quickly get rid of the loads of debts. But, as soon as they were granted bankruptcy, they would start a new business again. In a couple of years, they again would borrow lots of money, and in order to prevent the repayment, they would file for bankruptcy again. The new laws have reduced the possibilities of such bankruptcy frauds.

How Do The New Laws Help

Another objective of introducing the new laws is to help the debtors solve their debt problems without even filing for bankruptcy. The means test and the credit counseling services are capable of helping a debtor find an alternative to bankruptcy. However, if even the means test and credit counseling is not much of a help for you, your case will be considered a genuine one for bankruptcy. This is the time you must hire the best bankruptcy attorney who can successfully defend bankruptcy for you.

When Should You Hire An Attorney

It is very important for you to understand that the best time to hire a personal bankruptcy attorney is not the time when you are about to file for bankruptcy. Instead, you are recommended to hire a legal helper to help you with the means test and credit counseling. This way¸ it is highly likely that the bankruptcy law attorney will find you an alternate debt solution and you will not end up filing for bankruptcy.