Most people that are in debt have not gotten into this situation intentionally. They may have started out financially stable and feeling secure extended themselves financially more than they should have. Unforeseen circumstances erupted and the debt was no longer easy to handle. Once payments started to get behind it became impossible to get back on track.

Laws To Protect

For some of these individuals bankruptcy is their only option and they truly use it as a fresh start. There are some though that have attempted bankruptcy abuse. Their intention is to run their credit up as much as possible, and then when it comes payback time they simply opt for bankruptcy. This is why bankruptcy abuse prevention was introduced.

It became known as the Bankruptcy Abuse Prevention and Consumer Protection Act. Its implementation made a lot of changes to the bankruptcy law. It incorporated the use of a means test to determine if one should qualify for bankruptcy options. It is very important that this means test be completed accurately and it is far better to do so under the guidance of an experienced New Albany bankruptcy attorney rather than attempt it alone. It can mean the difference of you qualifying for bankruptcy relief. Your legal counsel will explain the full meaning of the means test, and which bankruptcy proceeding would be the best for you to apply for, and what the outcome of it will mean to your financial situation.