Personal Finance Guide

Following the 2005 implementation of the Bankruptcy Abuse Prevention and Consumer Protection Act, bankruptcy lawyers in Baltimore had to adjust their practices to usher in a new bankruptcy filing era. Previous bankruptcy amendments had not been made for decades prior to the October 2005 changes.
Baltimore bankruptcy lawyers must explain to their clients exactly how the new regulations can affect their filing and what the new standards and requirements are. The new bankruptcy laws require completion of an approved mandatory credit counseling program within six months of filing your petition. For people who intend to file bankruptcy more than once, one must allow a specified time period elapse, depending on which type of bankruptcy you have already and intend to file, prior to filing for bankruptcy again.
Baltimore bankruptcy lawyers should advise their clients to examine their last two months’ history of spending and to be careful of what they purchase in the near future because if you are already considering filing for bankruptcy yet still elect to purchase a few last minute luxury amenities, then the new laws will require you to pay for them in full if purchased within 60 days of filing. This includes cash advances and services greater than $500.
Baltimore bankruptcy lawyers will want to explain to their clients how the new expense guidelines work. The new guidelines set expense allowances that allow a specific amount of money for basic necessities like food and shelter. If there is an excess of at least $100 leftover after all other financial obligations have been met, then you are not able to file for a chapter 7 bankruptcy, which typically costs more than a chapter 13 would. The new bankruptcy laws are designed to make more people take responsibility for the debt they have accumulated and file for restructuring of debt instead of liquidation. Contact one of our lawyers for more information.

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