Bankruptcy Law

Do you have to get credit counseling before you can file for bankruptcy?

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2014-06-22 15:32:06
2014-06-22 15:32:06

You do not have to necessarily get credit counseling before you can file for bankruptcy.

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Most states do not require you to take a credit counseling course before filing bankruptcy. This is typically a volunteer activity.


The purpose of credit counseling is to let a person know ways to reduce their debt. They also counsel people in ways to stay out of debt. A person might need credit counseling if they are about to file for bankruptcy.


Filing for bankruptcy is a complicated process and one should consider hiring a lawyer to help with the filing process. You also need to undergo credit counseling and be aware of what type of bankruptcy to file.


New bankruptcy laws took effect October 17, 2005 as part of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. The new law requires all debtors to get credit counseling before they can file for bankruptcy.Before applying for bankruptcy under Chapter 7 or Chapter 13, debtors must attend credit counseling from an agency approved by the U.S. Trustee's Office (to find an approved agency in your area, go to the Trustee's website, www.usdoj.gov/ust, and click "Credit Counseling and Debtor Education"). This counseling is to determine if it is really necessary to file for bankruptcy or if an informal repayment plan could help avoid filing. The counseling is a requirement that cannot be avoided. You are required to participate, but not compelled to go along with any repayment plan proposed by the agency. If the agency does come up with a repayment plan, you must submit it to the court along with the certificate of completion before you can file for bankruptcy


Go to the US Trustee's Website. This is the link http://www.usdoj.gov/ust/eo/bapcpa/ccde/index.htm.


Yes, you need to have some form of credit counseling approved by the U.S. Trustees program. You must also take a finacial management course before you file for bankruptcy. The best thing to do is hire an bankruptcy attorney to guide you through the process.


First thing you need to do if you want to declare bankruptcy is get credit counseling and see if this is what you should do. If you do decide to declare bankruptcy you need to file with the courts. Bankruptcy doesn't take away all debts such as child support.


The fact that you have a repossession on your credit report is not a determining factor of whether your can file for bankruptcy. Generally in bankruptcy you can remove the debts from the repossession of your vehicle.


The bankruptcy will appear on their credit if you include this card in your bankruptcy. If you leave the card off the bankruptcy, it will not effect their credit.


You do not have to be unemployed to file bankruptcy.


Thier actions, or lack, do not effect your ability to file for bankruptcy.


If you are surrendering your house anyways, it is usually better for your credit score if you do it through bankruptcy. If your house is foreclosed on before you file bankruptcy, then your credit score is hit by both the foreclosure and the bankruptcy. If you let your house go back through bankruptcy, instead, then your credit score is only hit by a bankruptcy.


You have to, it is a debt...it is just a secured debt...by the lien on the property.


Filing bankruptcy does not remove a charge off report from a credit card on your credit report. It just adds bankruptcy to your credit report.


There are a number of steps to be taken when one is filing for bankruptcy. First one should decide if this is the right thing to do. It is wise to consult with a lawyer and decide whether to file for chapter 7 or chapter 13 bankruptcy. One should then undergo credit counseling and then complete the filing process.


If seeking simply the credit counseling requirement needed to file for bankruptcy, some sites online offer the service for as little as $5. Yet professional and sincere credit help may cost you nothing. If an individual truly wants help reducing his or her debt, very many credit counseling firms are non-profit and offer such a service for free.


Good question. There is a common misconception that bankruptcy is simple to file for and everyone who does so gets approved. In reality, neither of those are true. Successfully completing a bankruptcy proceeding can be a difficult process. However, there is a good deal of work you must do before you can file for bankruptcy. First, you are required to complete a "means test." This is a complicated calculation that determines your ability to pay your creditors. It also compares your financial status to the average person in your area. If you pass this means test, you are allowed to file a Chapter 7 claim in Bankruptcy court - otherwise, you can only file a Chapter 13 bankruptcy claim. The next step involves undergoing credit counseling. Bankruptcy law requires that you complete this counseling before going through the bankruptcy process. Finally, you can file for bankruptcy. In addition to filing, you must submit a bundle of paperwork with the Bankruptcy court. This paperwork includes information about your income, debts, assets, and personal information.


File for bankruptcy and then try and start over. Your credit will be messed up though.



Filing for bankruptcy is a lot more complicated and time consuming that may initially meet the eye. My first suggestion would be to have a lawyer help you with the process. Successfully completing a bankruptcy proceeding can be a difficult process. However, there is a good deal of work you must do before you can file for bankruptcy. First, you are required to complete a "means test." This is a complicated calculation that determines your ability to pay your creditors. It also compares your financial status to the average person in your area. If you pass this means test, you are allowed to file a Chapter 7 claim in Bankruptcy court - otherwise, you can only file a Chapter 13 bankruptcy claim. The next step involves undergoing credit counseling. Bankruptcy law requires that you complete this counseling before going through the bankruptcy process. Finally, you can file for bankruptcy. In addition to filing, you must submit a bundle of paperwork with the Bankruptcy court. This paperwork includes information about your income, debts, assets, and personal information.


If there is a bankruptcy filing showing on your credit report and you did not actual file, you should dispute that information with the three credit bureaus. They will then investigate and remove the information if it is inaccurate.


If the case was dismissed without prejudice, you can refile at almost anytime after you get the credit counseling. However, you should exercise extreme caution when refiling the bankruptcy and you should consult an attorney before doing so. Under the new laws, there are harsher restrictions on refiling bankruptcy to prevent "serial" filings. A serial filier is someone who files case after case to avoid eviction or foreclosure. Failing to file the Certificate of Credit Counseling can be sufficient grounds to find that the first bankruptcy was not filed on good faith and could result in an early termination of the automatic stay. If you refie, it may be necessary to file a motion to extend the automatic stay. Therefore, it is very important to see a qualified bankruptcy attorney about your situation.


$306 for Chapter 7, $287 for Chapter 13 - these are the court filing fees. You will also have to take credit counseling courses. One before you file and one after you file. These are mandated by law - this will run you $55... Attorney fee for chapter 7 is aroun $1000... I used the Genesis Law Group to file my bankruptcy. They did a pretty good job. They have over 30 locations in California.. Give them a call.


:A bankruptcy under chapter 7 or 11, or a non-discharged or dismissed chapter 13 bankruptcy generally remains on your credit file for 10 years from the date filed. A discharged chapter 13 bankruptcy generally remains on your credit file for 7 years from the date filed.


There are actually two classes you need to take. There is a credit counseling class that you must take within the 6 month period prior to filing for bankruptcy. You must also complete another financial management course within 45 afters after your Meeting of Creditors.



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