The government has introduced several new bankruptcy laws for those who want to file for bankruptcy. That means people who have higher income cannot volunteer for bankruptcy. They must pay at least part of their debt based on this rule.
Before filing for bankruptcy, they must get a credit analysis according to the new rules. Sometimes, it is very difficult for someone to declare themselves in the case of bankruptcy because new requirements for lawyers are enforced according to the rules.
The difference between the old and new rules is explained briefly below. You can also hire the professional bankruptcy attorneys in Concord.
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Considering the old rules, one can make the choice of the type of bankruptcy that is most suitable for him. However, according to the new rules, those who want to file for bankruptcy can be limited based on income levels and those with higher income levels cannot simply file for bankruptcy under the chapter of their chosen personal bankruptcy.
The modified bankruptcy law states that initially, the person's monthly income will be compared to the average income of people from the same country.
If it is found that a person's current income is equal to or less than the average income, then a person can file for bankruptcy, but, on the other hand, if the person's income level is found to be higher than the average income in each country, then he may be restricted from filing a bankruptcy case.