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Find the Best Lawyers for Bankruptcy or an Insolvency Law in Chennai India. Of course, you need a NCLT Lawyers or DRT Attorneys if you are struck up in Bankruptcy Law Litigation.
Law firms for Bankruptcy law in Chennai, Tamil Nadu, India
In modern days, there is a trend in the increasing number of fraudulent bankruptcy. A variety of new bankruptcy laws have now been incorporated into the bankruptcy code. Bankruptcy law has always been a complex one, and now, with the entry of new laws, the complexity has increased to a large extent only.
Plan to file for Bankruptcy case
Do you have a plan to file for bankruptcy, or if you are a creditor and are concerned about the money, you have provided, it is important for you to be aware of the major changes that have been brought by the bankruptcy law new. To start with, you should note that the new bankruptcy laws have come into effect. Following are some of the major changes:
Passing Means Test Is Required For Debtors
Because, the debtor has caused the majority of fraudulent bankruptcy; new bankruptcy law, in fact, trying to keep the creditors. Now, it is a problem of the past, when the debtor has the freedom to choose the type of bankruptcy they wanted to file a petition for the court. New bankruptcy laws have now been made mandatory for the debtor, to pass a means test before filing for bankruptcy.
Means test is a procedure in which the resources provided from the income of the debtor are considered. You are expected to evaluate total income and expenditure. Now, you have to reduce costs, and see how much money is left to you, upon completion of all necessary expenses.
Is this amount sufficient to pay the monthly installment of debt you owe? If money is left to you very little, and far less than the average income of the country, you can qualify for bankruptcy. On the other hand, if this amount is greater than the average income of the country, the available options are going to file for bankruptcy or go for an alternative to bankruptcy.
Bankruptcy law new also has made it mandatory for the debtors to go through credit counseling services that are approved by the government. The aim is to ensure that no bankruptcy alternatives are available to you. A credit counselor will review your financial situation and the amount of debt you owe to various creditors. If the credit counselors found that debt consolidation services may bring a solution for you, you will not be able to file for bankruptcy. In this case, a bankruptcy petition will be rejected and the bankruptcy court will ask you to pay the debt through debt consolidation services.