Bankruptcy Credit Counseling Under The New Bankruptcy Law
By BankruptcyHelpOnline.org, Fri Dec 9th
Bankruptcy credit counseling is a requirement of the newbankruptcy law effective October 17, 2005. The Bankruptcy AbusePrevention and Consumer Protection Act of 2005 requires courtapproved bankruptcy credit counseling to be completed by debtorsprior to filing for bankruptcy within the 180 days immediatelypreceding the filing of a bankruptcy petition.
The new requirement for bankruptcycredit counseling prior to filing for bankruptcy may becompleted by internet credit counseling, phone creditcounseling, or group or individual credit counseling atspecific, court approved bankruptcy credit counseling agencies.Under the new bankruptcy law, the U. S. Trustee's Office isresponsible for approving bankruptcycredit counselors. The U. S. Trustee's Office may approve anonprofit budget and credit counseling agency or aninstructional course concerning personal financial management ifthe nonprofit budget and credit counseling agency meets certainstringent requirements set forth in the law.
The new bankruptcy law has made filing bankruptcy more difficultthan ever before. The new bankruptcy law was fueled by creditcard companies and their high powered lobbyist who wanted tomake it harder for debtors to wipe out credit card debt.Bankruptcy credit counseling has been seen by many bankruptcyattorneys as an attempt to delay a debtor from seekingprotection in the bankruptcy court. The delay may be just enoughtime for a creditor to obtain a judgment or collect garnishmentfunds.
Most bankruptcy lawyers are finding out that the telephonicmethod of counseling is the easiest for debtors to complete in ahurry. Most telephonic counseling can be completed in about 1hour.
The maximum amount any bankruptcy credit counseling agency cancharge for counseling is set by law. No bankruptcy creditcounseling agency can charge more than $50.00 for the creditcounseling. Once bankruptcy credit counseling sessions have beencompleted, debtors are given a certificate of completion fromthe credit counseling agency to be filed with the bankruptcycourt upon filing of the debtor's bankruptcy petition.
About the author:BankruptcyHelpOnline.org is the bankruptcy resource solutionthat makes bankruptcy easy to understand. The Bankruptcy AbusePrevention and Consumer Protection Act of 2005 has made filingbankruptcy more complicated than ever before. BankruptcyHelpOnline.org is your source for useful bankruptcy information that iseasy to understand.
