Part of living in a wonderful nation such as the United States is that we have such awesome freedoms; with these freedoms come responsibilities as Americans.Laws are passed for our protection dealing with all aspects of our lives.Bankruptcy laws help make sure the process of filing bankruptcy is fair for all Americans, no matter their tax bracket.As the number of bankruptcies begin rising in our nation, it is important to know about the current laws that deal with bankruptcy.If you find that you are one of the thousands who are at a point where you need to declare bankruptcy, or you know someone who is preparing to file for bankruptcy, then you should know your rights.Remember, as with anything in life, it is better to be informed on the subject you are dealing with!

 All bankruptcy proceedings take place in the United States Bankruptcy Courts, and follow the laws of the nation.There are some individual state laws that vary from state to state that deal with bankruptcy.A certified bankruptcy lawyer can help you understand the laws in your stateand choose which type of bankruptcy is best for you to declare.When many people think of bankruptcy, they think of the “bankruptcy of the past”.This consisted of people going into extreme dept and then filing bankruptcy to keep what they had and never pay a penny.Unfortunately, this practice did occur a great deal in the past.Because of this common practice, the government has made strict bankruptcy laws for the public to follow.In April of 2005 the Bankruptcy Prevention and Consumer Protection Act was passed.This act has incorporated strict guidelines that must be followed during bankruptcy proceedings.It also requires things such as credit counseling for the people involved in the bankruptcy.This is called the “ticket in”.It is required for people who are thinking about declaring Chapter 7 bankruptcy to attend credit counseling sessions for six months before they even attempt to declare bankruptcy.There is also a formula now called a “means test” that determines if you are even eligible to file for Chapter 7 bankruptcy.This formula looks at your income, the state average income for where you live, and the debts that you owe.If it is found that you qualify after the counseling and “means test”, you may then file for bankruptcy.This act also includes random auditing of the bankruptcy candidates, which can help insure that people are not filing abusively.

Bankruptcy laws change occasionally and sometimes dramatically, such as in 2005.Because of these changes it is imperative to make sure that you have a lawyer who is well versed in the law.It is also a wonderful idea to choose a lawyer who specializes in the topic of bankruptcy.By choosing such a lawyer, you can be sure that they are up-to-date on the current laws and can look out for your best interests in the bankruptcy proceedings.