Q: What is bankruptcy?
A: Individuals who are on the verge of financial ruin may seek protection through federal bankruptcy laws available throughout the United States. If you are having problems paying bills or being threatened by creditors with lawsuits, wage garnishment, or property seizement, bankruptcy may offer a solution.
Q. I heard the bankruptcy laws changed recently; can I still file a Bankruptcy case?
A: Congress passed a new set of bankruptcy laws ("bankruptcy abuse prevention and consumer protection act") more commonly referred to as BAPCPA which resulted from many years of intense lobbying by banks, financial institutions, and credit card companies. These new laws were passed and signed into law by President Bush effective on October 17, 2005.
Contrary to popular belief and erroneous news coverage, the new bankruptcy laws did not eliminate bankruptcy or change many of the protections for debtors that rumors have stated. With the assistance of an experienced bankruptcy attorney, an individual or corporation can still avail themselves of the same protections as under the old bankruptcy laws. In some cases the new laws are even more advantageous. There are just a few more hoops to jump through and more documentation required.