New Horizon Business Services Inc.

Many people who are confronted with bad debt consider bankruptcy as a solution to their problem. In some cases, filing for bankruptcy could be the only practical step to take but this isn't always the case.

In 2005, the bankruptcy law was amended and major changes in the bankruptcy process have taken place. Let’s discuss some of these changes:

Requirements on Bankruptcy Filing

In the past, anyone can simply file for bankruptcy and wait to get approved. Today, an individual must first complete a credit counseling course with a government accredited agency at least 6 months before he can file for bankruptcy. If the counseling agency recommends bankruptcy as the next step, that's the only time a consumer can start filing.

What is this rule implement? It is to lessen the number of bankruptcy cases filed each year. Since some people use bankruptcy as a way to escape from their responsibilities, going through a credit counseling course would ensure that other possible solutions have been considered to help a consumer get out of debt.

Bankruptcy and Bankruptcy Attorneys

Under the new law, lawyers are responsible to ensure that all the information provided in the bankruptcy documents are true and accurate. Understandably, many lawyers or attorneys who specialize in bankruptcy cases have raised fees for their services. If you are contemplating bankruptcy, don't forget to consider the costs.