Recently, a large number of Americans use the bankruptcy of Chapter 13 as a means of stopping foreclosure and eliminating debt. Because the growth of Chapter 13, many people question the changes made to the Bankruptcy Code were more to allow a bankruptcy lawyer to further invoice bankruptcy cases. Some went so far as to say that they believed that lawyers advanced their customers of the bankruptcy of Chapter 7 and in Chapter 13 so that they can charge higher fees. Although this has a suspicious spirit, I did not believe that a bankruptcy lawyer would spend so many problems to do an extra dollars. A chapter 13 bankruptcy is very involved and the customer is attached to the hip of the Prosecutor of Bankruptcy up to five years. This does not look like a picnic for the prosecutor either.
Since the amendments to the Bankruptcy Code in 2005, an individual deposit bankruptcy is required to qualify for depositing the bankruptcy of Chapter 7. To qualify to deposit Chapter 7, you have to take the test of the means. Basically, the test of the means takes over the last six months, the six-month divide and multiplies it by 12. This will give the average annual income of the individual filing bankruptcy. This amount will be compared to the median income graph of the state that resides. One thing that most people do not consider is that the bankruptcy court examines household income and not individual income. So if the person has a working spouse, their income must also be included even if we deposit separately. But that’s not all, even if the person can do less than median income, they must also complete an income report and household spending. This is where the person will include all their monthly expenses of rent, food, clothing and all medical expenses, etc. The person can not include any payment for creditors in spending. If a person has more than $ 170 of income spent, they could be forced into a bankruptcy of Chapter 13. It is not the fault of the Prosecutor of Bankruptcy, but it is the law on bankruptcy. Many lawyers will try to ensure that the person understands the importance of including all their expenses. It is a problematic area that many handymen who have deposited bankruptcy are hiding and eventually having a bankruptcy trustee trying to push them into chapter 13.
The bankruptcy prosecutor must work with the numbers given to them. They can explain the bankruptcy code until they are blue in the face, but if the customer does not qualify because they do too much money or they do not have enough expenses Household, it looks like the deposit of Chapter 13 Bankruptcy is their only option. In some cases, depending on the career, the lawyer of bankruptcy can hold bankruptcy of bankruptcy at a time of the year when the person makes less money. This is typical of people who work for a commission as a real estate agent. People need to overcome the idea that a lawyer is badly directed for a financial gain. The numbers speak for themselves and if someone does not qualify to deposit the bankruptcy of Chapter 7, the only other option is Chapter 13.