Money Smarts: Bankruptcy

Recent changes in the bankruptcy law require nearly everyone who
wishes to file for bankruptcy protection to first receive credit counseling.
The goal of this counseling requirement is to provide you with a comprehensive overview of your financial situation, including a budget,
listing of debts and net worth estimate, and to inform you of commonly available options for someone in a financial crisis other than bankruptcy.

Please read more about bankruptcy as follows below:

 

Issues to consider

  • Filing bankruptcy is a serious step that could affect your credit
    history and increase your costs of obtaining credit and loans for a
    mortgage, car loan, or credit cards.
  • Bankruptcy is a matter of public record so relatives, friends,
    and neighbors could find out.
  • Bankruptcy laws have changed and filing bankruptcy has become
    a more complicated process.
  • New Bankruptcy Requirements
  • President Bush signed into legislation changes to the bankruptcy
    law that take effect on October 17, 2005

What are the new changes?
Personal bankruptcies have hit record levels with approximately
1.6 million bankruptcy petitions being filed nationwide last year.  Congress
passed legislation in April of 2005 that now requires individuals to go through
more rigid procedures and pass a “means test” to see which type of
bankruptcy they can file. 

Any individual that is contemplating filing bankruptcy must meet with a credit
counseling agency to learn about alternatives to bankruptcy, and have the
counselor do a budget analysis of your income and expenses so you can make
the correct financial decision that is best for you.

The counseling session is required by law and you will receive
a certificate of attendance that must be given to your attorney if you
do decide to file for bankruptcy.

For those clients that do file for bankruptcy, the legislation now
also requires those individuals to take and complete a financial
management course prior to their debts being discharged by the court.

This agency charges a fee of $50 for this service. In limited circumstances
you may be eligible to have this fee waived. Service will not be denied
due to inability to pay. This fee applies to both Bankruptcy Pre-Filing
Counseling and Pre-Discharge Education.  

Apply On-line Now:
Click below to be directed to our on-line Debt Management Application.

GO TO THE DEBT MANAGEMENT APPLICATION.

 

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