We are expecting several changes in 2019; Bankruptcy Laws are one of them. After a meeting of legislative in Q3 2018, the Federal Council will introduce two reforms from January 1, 2019.
The first reform is related to Swiss Debt Enforcement and Bankruptcy Act. From 1st January 2019, debt collection offices cannot offer information of debt collection proceed to a third party, especially when debtor requisition a 3 months notification payment order. This information will be only available if the creditor proves with a 20-day deadline.
The Second Amendment is related to the Federal Act on Private International Law. The current legislation sets strict conditions related to the foreign decision of bankruptcy. They restrictions slow down the court and keep the case from reaching its verdict.
The new provisions will make the court proceedings smoother with coordination of insolvency and bankruptcy proceedings.
That said, how the new laws will affect Bankruptcy Filing. The answer is, they won’t! 2018 already had its influence on Bankruptcy. In Q1 2018, new tax laws were introduced that changed how we used to file for bankruptcy.
The new law brought several changes to businesses. People contemplating filing for bankruptcy under chapter 7 or chapter 13 will feel the effect in case their median income couldn’t past the new standards and failed to obtain a lower payment plan.
The tax reform was geared towards high earning communities as they were going to receive a higher tax cut. It helped them pay their creditors through disposable income.
Test Work in Bankruptcy
The Means Test evaluates how much disposable income the filer has to pay. If the sum is zero, then you could qualify as a Chapter 7. If the number is high, then you will qualify Chapter 13. In this way, you would seek deductions in disposable income just as you would on your taxes. These deductions are calculated to paystubs and cover federal tax, medical care, social security, and other things. If the amount cuts off in culture, you won’t get any relief on your means test.
Fortunately, it will make some difference for people who don’t earn well. For people below median income, they will unlikely feel the impact of bankruptcy reforms.
Filing for Bankruptcy
Filing for bankruptcy can help you get out of burdensome debt. Often most people are relieved once their bankruptcy case is over. However, filing for bankruptcy and going through the whole process is very daunting.
This is where you need help. Not only they will give you a legal stance, but help you with everything from paperwork to court proceedings. Following, we are going to explain what you should explain from your bankruptcy attorney:
- Facts of your Lawsuit
- What to file for, Chapter 7 or Chapter 13
- Can the Trustee sell your property or not/li>
- The involvement of a Bankruptcy Litigation
The lawyer can help you with every aspect of your case. But you will need to draw a retainer agreement which will outline the services of your bankruptcy attorney. The layer is supposed to offer you advice throughout the whole process.
A Chapter 7 Bankruptcy is when the bankruptcy trustee cancels your Debt and (might) liquidate some of your property to repay the creditor. A Chapter 13 bankruptcy is possible when you earn a higher income and want to protect your assets. In exchange for the relief, you will pay your discretionary income, to the creditors throughout the 3-5 year repayment plan.
Despite whatever chapter of bankruptcy you file for, you need a qualified and experienced attorney at your side. They will help you navigate the legal while making your case. You can expect the attorney to tell you whether you should or shouldn’t file for bankruptcy. If you think hiring an attorney is a waste of money, then let us help you change your mind.
Why You Need an Attorney to File and Fight Bankruptcy?
You can file for Bankruptcy without a layer. If you have an open and shut case, then saving Attorney’s fee by representing your case on your own might be the right thing But if you have valuable assets you want to protect, then hiring an attorney is the best course of action.
Following, we are going to explain why it’s worth hiring a Bankruptcy Lawyer, so stick with us!
The biggest benefit of hiring a bankruptcy attorney is you get rid of any hiccup during your case as you plan carefully. Following, we are going to explain how an attorney helps you plan for the upcoming:
If you are in financial crises, then filing for Bankruptcy might not be the only way out. Having an attorney can help you make the right choice whether you should file for bankruptcy or look for the alternative option.
Type of Bankruptcy
There are different types of Bankruptcy; all of them aid different purposes. For instance, a Chapter 7 bankruptcy helps to wipe out your debt quickly. But it won’t safely keep your property if you get behind on payments. Therefore, having an attorney helps you make a well-informed decision considering what will be feasible for you.
Preparing for Bankruptcy
Having an attorney helps you prepare to file for bankruptcy. The right attorney can help you with the following thing:
This means test calculation whether you qualify for a chapter 7 or not. It depends on whether you can afford the payments. An attorney helps you disclose and value your asset properly and get the best deal possible against their value.
Value Your Property
Don’t you know the property of your assets? Don’t you know who will offer the best value for your property? Don’t worry; an attorney will help get the best agent to value your property for the best rate.
Every state has a unique exemption system. It keeps the property in bankruptcy. Your Attorney will help you understand how to use an exemption and protect your assets.
Discharge of Debt
Some debts are hard to wipe out, especially when it comes to bankruptcy. You can get rid of your other debts if you meet the conditions. To get a better perspective, speak with an attorney, they will explain which debts will be eliminated and which can be.
Filing without an Attorney
It is not uncommon to file for bankruptcy without a layer. 9% file for chapter 7 and 8.4% file for chapter 13 bankruptcy without a lawyer. They prefer to handle things on their own. The only thing that matters here is the success rate. According to a report, only a 2% of chapter 13 people manage to secure a repayment plan on their own.
On the contrary, around 60% of people who hire an attorney successfully file for bankruptcy.
Surviving the Bankruptcy
Following, we will show you how to survive the Bankruptcy:
Submit the Paperwork on Time
You will need to file your financial information including your
Everything will be under penalty of Perjury. Your attorney has the right to know what you are going to disclose. Therefore, you must inform him of the value of your assets, your income and explain your expenses with tax returns and other issues.
Navigating Your Way
The attorney will explain everything you need to know and help you prepare for what’s waiting for you. This way, the attorney acts more of a bankruptcy trustee. They help you make your way for discharge.
You are needed to sign bankruptcy paper under penalty of perjury; you need to tell the court everything you now. Make sure every bit of information you put is accurate. Affirm you are telling the truth when meeting with creditors. The Attorney will help reinforce your position.
Take Care of Creditors
Don’t expect your creditor to back away easily. They are prepared to violate the automatic stay. If this is the case, then let your attorney demand complaint or ask the court to hold them in contempt.
Negotiate with the Creditor
When it comes to Chapter 7 Bankruptcy, you can negotiate a reaffirmation agreement with your creditor. It will allow you to keep hold of your property. Moreover, it will help make the repayment a bit easy.
Change Chapter 13 Repayment Plan
If conditions change during Chapter 13 case, you need to ask the court to make a temporary or permanent adjustment plan to terms of your Chapter 13 Plan; you need to request an early discharge because of financial distress.
Rebuilding Your Credit
Once you are through the case, you need to focus on building back your credit. The San Diego Bankruptcy Attorney can help here as well. These lawyers assure your case goes smoothly, and you take benefit of a fresh start.
They help to resolve any post-bankruptcy issue, especially if your collector is bugging you for the debt that was cleared by bankruptcy. The story doesn’t end here; many lawyers help you to rebuild credit and give you handy tips which will help you take benefit of the offers you will receive as soon as the case ends.