The modifications made to the existing bankruptcy laws in 2005, passed under the Bankruptcy Abuse Prevention and Consumer Protection Act, provided the American bankruptcy code with significantly more stringent laws regarding filing for bankruptcy. This law increased the amount of work a debtor has to go through in order to file for bankruptcy, making the system much less available to the general population. However, there are certain standards that were established to protect those who have suffered because of a natural disaster.
Austin Bankruptcy Lawyer, San Diego Bankruptcy Attorney, San Jose Bankruptcy Lawyer,
Specifically spurred on in the aftermath of Hurricane Katrina, bankruptcy law has provided some major concessions for those without the means to follow the normal standards of bankruptcy under BAPCPA. As a result, the following major changes have been made if a disaster has severely affected a person's finances.
Under natural disaster clauses, a person cannot be prosecuted for fraud if their paperwork or records were destroyed because of a natural disaster. Under normal circumstances, improper or insufficient record-keeping may be grounds for additional punishments, included making debts non-dischargeable or closing a bankruptcy case.
Similarly, the physical limitations that become imposed on people because of natural disasters means that meetings with creditors or even court dates may be more flexible. For example, a debtor may be completely unable to leave the direct vicinity of their location due to flooding, which can be permissible under natural disaster clauses. This may extend to credit counseling meetings.
The means test, perhaps the most important addition under BAPCPA, can be removed if a disaster has decidedly impacted a person's finances. As the destruction caused by major disasters can easily be enough to devastate a person's property, this test is modified to permit more bankruptcy eligibility.
For more information regarding bankruptcy, BAPCPA, and special circumstances, contact a bankruptcy attorney.
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
Rating of San Jose Bankruptcy Lawyer
Get Online Application at online Bankruptcy Lawyer.
0 comments:
Post a Comment