Some people have described Bankruptcy as an epic war between debtors and creditors. These two groups are constantly battling for control of the debt in question. The debtors are seeking to either reject or modify the debt while the creditors are seeking to enforce the debt. The Bankruptcy Trustees and Judges are the negotiators enforcing the law while attempting to balance the scales of justice.
This may be a brutal description of bankruptcy but this is what it some people feel it has become today. In the past, creditors would only rear their heads if there was a large amount of debt at stake. Now as the economy continues to fall apart, creditors have become more aggressive in collecting on the amounts owed to them, no matter what the amount. Creditors can no longer afford to use the same "cost of doing business" model as they once did and allow debt to be written off without question.
As creditors heat up the battlefield the debtors are finding that they have to fight every step of the way to control their debt. This means that the debtors have to tighten their belts even more due to scrutiny of the trustees and judges. You probably have heard the phrase "the squeaky wheel gets the grease." In this case the squeaky creditor gets the money. Or the flip side of that equation is the squeaky debtor is going to keep their budget. Either way there is going to be a whole lot of squeaking going on. Debtors under this current Bankruptcy Code have had to prove special circumstances when it comes to their work or home budget. This is not new as you have always had to prove these things to a certain point but now the microscope has come out to analyze in minute detail.
As with any war many analysts are asking is the cost too high? Is Congress really getting what they intended when the new law was enacted? There are no easy cases in bankruptcy. Every case is unique and has the potential to fail if the debtor does not disclose everything about their financial situation, assets and creditors.
Don't be a casualty of the bankruptcy war. Hire an experienced bankruptcy attorney. Be honest with your attorney. Be prepared for your attorney by getting everything they need. Ask lots of questions about your case. Learn how to budget. Most importantly be involved as this decision will affect your financial future.
Help your attorney help you regain financial control. I offer a free initial consultation where you can get all your questions answered, so what are you waiting for?