A bankruptcy petition provides struggling individuals
with the opportunity to start a new life free of debt. It absolves them of any
debt they have accumulated and relieves a great deal of financial burden. On
the other hand, bankruptcy may have some beneficial effects. An
individual will experience long-term negative consequences as a result of their
bankruptcy petition.
In 2005, the United States Government
acknowledged that existing bankruptcy rules made it possible for individuals to
take advantage of the bankruptcy system. In theory, an individual could
frivolously spend large quantities of money and then file a bankruptcy petition
in order to avoid repaying lenders.
In order to make it more difficult for individuals to
abuse the system, the government adopted new bankruptcy rules and passed new
legislation in 2005. These new bankruptcy rules make it more difficult for an
individual to file a bankruptcy petition for the second time.
There are various bankruptcy rules that must
be satisfied in order for an individual to be eligible to file for bankruptcy a
second time. An individual must be making below a certain income threshold in
order to be eligible for bankruptcy. New bankruptcy rules make repeated filing complex and
time-consuming. An experienced bankruptcy attorney will help an individual to
determine whether or not he/she is eligible for bankruptcy, as well as ensure
that all aspects of the legal process are completed effectively.
