by
Carl Hampton
11/14/2006 
Having a hard time paying your bills? Do
they seem like they just keep adding up? A
lot of people in this situation think that
filing for bankruptcy is the easy way out.
In all reality, bankruptcy should be your
very last resort. Most people do not
understand the long term effects of this
course of action they are also unaware that
there is a very extensive process that
happens before and after you file for
bankruptcy.
The Bankruptcy Abuse Prevention and Consumer
Protection Act of 2005 states that people
who plan to file for bankruptcy protection
are now required to receive counseling from
an agency that is government approved within
a six month period before filing. After
filing bankruptcy a debtors education course
must be completed. The Department of Justice
has a U.S Trustee Program wherein only
counselors and educators that appear on the
program's list can counsel you. By law the
U.S. Trustees Program cannot operate in
Alabama and North Carolina because they have
what are referred to as Bankruptcy
Administrators.
The credit counseling and debtor education
might not take place at the same time. But
it is necessary to complete both for those
who are filing for bankruptcy. The
counseling must take place before filing, a
certificate of credit counseling completion
must be attained when filing for bankruptcy.
The debtor education program normally takes
place after the filing.
The counseling session consists of an
evaluation of personal financial situations,
a discussion of alternatives to bankruptcy,
and a budget plan. The session should
normally take about an hour, and the filer
has the option of taking the session in
person, on line, or over the phone. For
those that cannot afford to pay for the
counseling the organization is required to
provide their services free of charge. But
for those who can afford to pay the fee will
be about $50 depending on location. Once the
counseling is complete you are given a
certificate as proof you have taken the
course.
It is up to you to decide what organization
you will use for credit counseling. When you
are calling around please make sure you ask
some of the following questions. What
services to you offer? What are you fees?
What if I can't afford them? What
qualifications do your counselors have? Will
you help me develop a plan for avoiding
problems in the future. If you ask at least
half of these questions, you will have a
good idea about the organization and your
decision making will be much easier.
The educational courses will consist of
similar information as the counseling
sessions, budgeting, using credit wisely.
Like the counseling sessions you have a
number of options on how you can take the
educational courses, in person, over the
phone or on line. These courses last longer
at about two hours and the fee is anywhere
between $50 to $100. You can seek a waiver
if you are unable to pay. You should also
receive a certificate as proof that you have
taken the course.
Have an opinion or a question you would like
me to answer, then write me!
http://www.CarlHampton.com
