The government has introduced some new bankruptcy laws for those who wish to file for bankruptcy. That means the persons who have higher incomes can not file themselves for a bankruptcy. They have to pay at least some of their debits under this rule. Before filing for a bankruptcy, they have to get their credit analysis as per the new rule. Sometimes, it is very difficult for somebody to signify themselves in a bankruptcy case because new requirements on the lawyers are enforced according to the rule. The difference between old and new rules is described briefly below.
Considering the old rules, one could make a choice of bankruptcy type that is most suitable for him/her. But, according to the new rule, those who wish to file for bankruptcy can be restricted based on the income levels and those with higher income levels can’t simply file for bankruptcy under any personal bankruptcy chapter of their choice.
The modify bankruptcy laws state that initially, the current monthly income of the person will be compared with the average income of a person of the same state. If it is found that the current income of the person is equal to or less than the average income, then one can file for bankruptcy, but, on the other hand, if the income level of the person is found to be higher than the average income in the respective state, then he/she may be restricted from filing a case for bankruptcy.
The actual aim of the government to enforce the bankruptcy laws is to find out if a person has more than sufficient income after spending on definite expenses and making needful payments, and stop such individuals from simply filing for bankruptcy despite generating a decent level of income. One can also test his/her candidature privately by cutting off some debit payments and allowed expenses from his/her present monthly income. If the total income left after this calculation is less than average level income in the state, then he/she can file for bankruptcy without any problems.
To know more about new bankruptcy laws and other financial matters related to bankruptcy and credit repair, visit the site listed in the resource box.