Bankruptcy FAQs
Q: Will the recent bankruptcy reform legislation prevent me from obtaining relief under Chapter 7?
A: Probably not, but it depends on your individual situation.
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, most of which became effective on October 17, 2005, worked the most substantial changes to the Bankruptcy Code since its enactment in 1978. The new changes include a “means test”, which is based on the concept that an individual with primarily consumer debts will be permitted to file for Chapter 7 relief only if such relief is warranted, based upon an analysis of whether the debtor can afford to repay a scheduled amount or percentage to unsecured creditors. Although the means test is complex, Lawrence & Jurkiewicz, LLC is prepared to make the calculation, based upon information you supply.
Bottom line: the vast majority of individuals who could obtain Chapter 7 relief under the old law can still obtain Chapter 7 relief under the new law. For those who cannot, Lawrence & Jurkiewicz, LLC is prepared to review other options with you, including filing a wage earner reorganization plan under Chapter 13.
Q: Wouldn’t I be better off saving the cost of an attorney by preparing my own bankruptcy filing, or obtaining the assistance of a “petition preparer”?
A: Representing yourself is not recommended, and a petition preparer cannot give you legal advice. Although Lawrence & Jurkiewicz, LLC prides itself on utilizing its experience to make the process as streamlined and pain-free as possible, bankruptcy reform has made the process more complex, with more disclosure, more deadlines, and more conditions for eligibility than ever before. Self-representation, always unwise, is now, as a logistical matter, almost impossible, and the cost of a qualified attorney who is familiar with and prepared to guide you through the bankruptcy system is small in comparison.
