Consumer Credit Counselling

BANKRUPTCY CREDIT COUNSELING

Bankruptcy credit counseling is now a new requirement with an October, 2005 change in the bankruptcy laws. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 require bankruptcy credit counseling to be completed by all debtors.

This must take place within 180 days immediately before filing of a bankruptcy petition.

This new bankruptcy law has made filing bankruptcy more difficult than ever before. Credit card companies wanted to make it harder for you to wipe out your credit card debt.

 
Bankruptcy
Rules Have Changed

A Counseling Certificate is now required! 

This bankruptcy credit counseling certificate needs to be filed with the bankruptcy court upon your filing of your bankruptcy petition


How To File For Bankruptcy


Bankruptcy credit counseling may be completed via the internet, phone, group or individual sessions with court approved bankruptcy credit counseling agencies. The U. S. Trustee's Office is responsible for approving bankruptcy credit counselors. 

The majority of lawyers are recommending the telephone sessions as they are the easiest for you to complete in a hurry. Most telephone sessions are completed in less than one (1) hour.

The maximum amount any counseling agency can charge you for the session is set by law. The maximum they can charge you is $50.00, for the bankruptcy credit counseling portion of the session. Once you complete the session you will be given or mailed a certificate of completion.

Bankruptcy Protection


The number one reason people seek bankruptcy protection is to get relief from the unrelenting pressure that some bill collectors place on people who are delinquent on their payments. 

Some believe that bankruptcy is the only way they get their debts discharged with any hope of ever getting back to a normal life.

For those who absolutely need it, bankruptcy can be the best answer, but there are drawbacks to filing for it. These drawbacks can be severe for most people.

The new bankruptcy laws are designed to keep more people out of bankruptcy than to allow in. Once a court has approved your bankruptcy filing, it will stay on your credit report for ten years.

However, many people do not realize that it will stay on their court report for life. This can present problems later on if a person is trying to get a high-level job or a security clearance.

Bankruptcy Alternatives


There are two main ways to avoid Bankruptcy.
  1. Consider a Debt Consolidation Loan
    (click for a great resource that will really help you!)

  3. Seek Consumer Credit Counseling

Should I File Bankruptcy


If the two above alternatives have failed for you, bankruptcy may be your only option. Because the new laws are often confusing it is suggested that you seek the advice of a qualified bankruptcy attorney before making any decisions.  In some cases, people who wish to file for bankruptcy may not be able to do so.

Bankruptcy credit counseling can save you and your family a lot of time and emotional distress.



Bankruptcy Credit Counseling
 
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