Bankruptcy credit counseling is a requirement of the new
bankruptcy law effective October 17, 2005. The Bankruptcy Abuse
Prevention and Consumer Protection Act of 2005 requires court
approved bankruptcy credit counseling to be completed by debtors
prior to filing for bankruptcy within the 180 days immediately
preceding the filing of a bankruptcy petition.
The new requirement for bankruptcy
credit counseling prior to filing for bankruptcy may be
completed by internet credit counseling, phone credit
counseling, or group or individual credit counseling at
specific, court approved bankruptcy credit counseling agencies.
Under the new bankruptcy law, the U. S. Trustee's Office is
responsible for approving bankruptcy
credit counselors. The U. S. Trustee's Office may approve a
nonprofit budget and credit counseling agency or an
instructional course concerning personal financial management if
the nonprofit budget and credit counseling agency meets certain
stringent requirements set forth in the law.
The new bankruptcy law has made filing bankruptcy more difficult
than ever before. The new bankruptcy law was fueled by credit
card companies and their high powered lobbyist who wanted to
make it harder for debtors to wipe out credit card debt.
Bankruptcy credit counseling has been seen by many bankruptcy
attorneys as an attempt to delay a debtor from seeking
protection in the bankruptcy court. The delay may be just enough
time for a creditor to obtain a judgment or collect garnishment
funds.
Most bankruptcy lawyers are finding out that the telephonic
method of counseling is the easiest for debtors to complete in a
hurry. Most telephonic counseling can be completed in about 1
hour.
The maximum amount any bankruptcy credit counseling agency can
charge for counseling is set by law. No bankruptcy credit
counseling agency can charge more than $50.00 for the credit
counseling. Once bankruptcy credit counseling sessions have been
completed, debtors are given a certificate of completion from
the credit counseling agency to be filed with the bankruptcy
court upon filing of the debtor's bankruptcy petition.
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that makes bankruptcy easy to understand. The Bankruptcy Abuse
Prevention and Consumer Protection Act of 2005 has made filing
bankruptcy more complicated than ever before. BankruptcyHelpOnline.o
rg is your source for useful bankruptcy information that is
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