Strict Guidelines Expected for New Bankruptcy Law

(08/25/05 - RALEIGH) -- In Monopoly, a roll of the dice, could land you on the boardwalk, with a prime piece of real estate. Or you could end up losing all of your money. That's what happened to Federico Van Gelderen.

Three years ago he was scammed out of his hard earned cash and was forced to file for bankruptcy. "There was a moment when we said that's it we can't handle this we went to an attorney we lost everything the house the car everything."

The old bankruptcy laws were very subjective. With the old laws in place, in North Carolina, a bankruptcy administrator and the court would decide if you could file.

Now when the new bankruptcy laws go into effect, in October, it may be tougher for people like Federico to start a new life. "It has a lot of complicated and sweeping changes to the existing law that some people perceive as making it harder to file for bankruptcy."

Despite the hardships, Federico says he's glad he had to file. "I think this kind of experience helps put things into perspective."

Bankruptcy lawyer, Stephani Humrickhouse says if you have any doubts about what you should do, always consult an attorney before the law changes.

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