Prior to the new federal regulations stipulating stricter bankruptcy guidelines, filing for a personal bankruptcy was simple and relatively easy. There were massive numbers of filers who attempted to file their personal bankruptcy petitions in a rush just before The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 became effective on October 17, 2005. As a result, the number of people that filed for bankruptcy in the fall of 2005 dramatically increased. As with all attorneys around the country, I’m sure that lawyers from Belleville felt the crunch of the expedited bankruptcy filing.
Prior to the 2005 bankruptcy amendments, the last modification to bankruptcy laws was more than twenty five years ago in 1978. The new bankruptcy laws were intended to reduce the number of Americans who continuously take advantage of the option by shifting trends of those who traditionally file a chapter 7, asset liquidation. The goal is either to have them file a chapter 13 reorganization or to avoid filing for bankruptcy altogether by exercising one of the bankruptcy alternatives. Belleville lawyers must familiarize themselves with all the new laws. Under the new laws, the burden of proof lies with the filer. He or she must have physical evidence to support the fact that they are utilizing bankruptcy as a form of relief instead of abusing the privilege that so many have taken for granted in the past. Basically, the new bankruptcy laws provide protection for unsecured creditors to help minimize their losses where possible. When filing a personal bankruptcy claim, the individual has two different options. They can either file for a chapter 13 or a chapter 7 bankruptcy. Lawyers from Belleville should explain to their potential clients the differences in the two chapters and the simultaneous benefits and consequences associated with each type of following prior to processing any of the required paperwork.

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