Released on: February 22, 2008, 3:29 pm

Press Release Author: Brownstein & Brownstein LLP

Industry: Law

Press Release Summary: Bankruptcy is not dead. Today, most Americans in financial
difficulty can still use the Bankruptcy Courts for protection. Bankruptcy is still
an available option to most Americans in financial difficulty. Creditors can be
stopped, and foreclosures can be prevented.

Press Release Body: Bankruptcy is still an available option to most Americans in
financial difficulty. Creditors can be stopped, and foreclosures can be prevented.

Recent changes in the Bankruptcy Laws and the publicity associated with them has led
many to believe that Bankruptcy is no longer available as a means of avoiding
unbearable debt. This is not true.

In 2005, Congress passed sweeping legislation, sponsored by the Consumer Credit
industry, which changed the requirements for seeking Bankruptcy relief. Since the
2005 amendments to the Bankruptcy Code there has been a lot of misinformation
regarding the accessibility of the Bankruptcy Courts for Americans in financial
difficulty. But Bankruptcy is not dead.

In fact, today, most Americans in financial difficulty can still use the Bankruptcy
Courts for protection. There are two ways to establish your eligibility for a
Chapter 7 Bankruptcy.

One way to establish eligibility for a Chapter 7 Bankruptcy is to show that the
household's income, for six months, is less than the national median income for the
same size household (adjusted for each state). Of course, many households in
America make less than the median income while a similar number make more than the
median income.

For those households that make more than the median, there is a second test to
establish eligibility for Chapter 7 Bankruptcy. However, the second test is more
complicated. The second eligibility test is based upon whether most of the
household's income is needed for the necessities of life. Many American households,
today, use all of their income, and more, for the necessities of life. This second
test, therefore, affords eligibility to many households which make more, sometimes
much more, than the national median income.

We find that more than 75% of the individuals that consult with us regarding
Bankruptcy protection are eligible under the 2005 Amendments to the Bankruptcy Code.
This, of course, requires a careful analysis by an experienced Bankruptcy Lawyer.

Before the law was changed in 2005 many lawyers and paralegals dabbled in
Bankruptcy. Today, many of those lawyers and paralegals will not. The State Bar
of California, Board of Legal Specialization certifies the competency of Bankruptcy
Specialists so that a client seeking the advice of a Bankruptcy Specialists can be
certain that the chosen lawyer is competent to protecting their interests.

In these troubled financial times there is one portion of the Bankruptcy Code, which
specifically affords protection for people under the threat of foreclosure.
Chapter 13 of the Bankruptcy Code allows for homeowners to stop foreclosure
proceedings and force their lenders to allow sixty months to pay back arrearages.
This is just the relief that many American Households need.

Here too, the eligibility for a Chapter 13 Bankruptcy is something that should only
be analyzed by an experienced Bankruptcy Lawyer. The specific financial facts for
each individual must be review in determining whether Bankruptcy is a good idea.
But, it is still available and makes good sense for many financially troubled
Americans.

Bankruptcy is not dead but alive and well as a tool in the hands of an experienced
lawyer to protect valuable assets and financial well-being.

Richard A. Brownstein

One of only 105 lawyers in the State, Certified by the California Bar Association,
Board of Legal Specialization as a Bankruptcy Specialist.



Web Site: http://www.brownsteinllp.com

Contact Details: Richard A. Brownstein
Brownstein and Brownstein LLP
21700 Oxnard Street, Suite 1160
Woodland Hills, CA 91367
Tele: 818 905-0000
rb@brownsteinllp.com