Louis Zimmerman Attorney at Law

 

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About Bankruptcy

 

    Bankruptcy will allow you to eliminate many or all of your debts. In most cases, people are allowed to keep all or most of their property.

 

     Bankruptcy is a very old idea that if someone is truly not able to pay their debts, they should be given another chance instead of being harassed by creditors for the rest of their lives. Our modern bankruptcy laws offer a legitimate solution for many Americans who find themselves unable to pay their bills and wish to make a fresh start. Bankruptcy allows you to eliminate much of your debt and gives you time to get back on your feet without harassment by creditors.

 

     There are two main types of bankruptcy available to individuals; Chapter 7 (straight bankruptcy), and Chapter 13 (debt consolidation). In both cases, creditors are immediately prohibited from contacting you at work or home upon filing your case.

 

     There is no need to feel guilty about filing for bankruptcy. The primary reasons for filing personal bankruptcy are unforeseen medical expenses, excessive credit card debt, loss of employment, and divorce. Needless to say many of these events create not only financial difficulty but also a tremendous amount of disruption and distress in and of themselves.

 

     On October 17, 2005, The  Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 was enacted.  This new law is designed to make bankruptcy much more intrusive and complicated. The credit card industry spent over $40 million dollars with lobbyists and campaign contributions to support this legislation. Needless to say, the new law greatly favors banks and credit card lenders.

 

     However, bankruptcy relief still exists and, for many consumers, the new law may not affect your bankruptcy options at all. Approximately 80% of consumer debtors who filed bankruptcy last year would still be able to file under the new law.

 

     The biggest change we face as lawyers has to do with the additional information we must now collect. For example, in order to properly complete your schedules, I will need copies of pay stubs for you and your spouse for the past six months (regardless of whether you spouse is filing with you). In addition, you will need a certificate from a credit counseling agency before you are allowed to file and you must complete an approved debtor education course prior to your discharge in bankruptcy.

 

Even though there have been changes throughout the history of bankruptcy, it will always and must remain a safety net that is available to all Americans.

 

 

For further information or to schedule an appointment Coachella Valley: (760) 327-1020