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The Truth Behind Bankruptcy - The Laws Have Changed


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It isn't bad enough that you have spent the last several months or years running from or hiding from collector and their abuse and or law suits, but now your faced with an even tougher decision. Should I file for bankruptcy?

There are several things to consider, and these consideration must be made bast on fact. In order to see the facts for yourself, do not take the word of any company or private attorney. Get the fact yourself from the Federal Trade Commissions Website at FTC. gov. You will find it interesting that even our Federal Government forces us to use the very company that is funded by the banks we owe, CCCS. New requirements for full debt relief under chapter 7 bankruptcy from 2005 are quite clear. Some of these requirements are as follows:

"The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 opened a new era: Consumers who plan to file for bankruptcy protection now must get credit counseling from a government-approved organization within six months before they file.

The Department of Justice's U. S. Trustee (UST) Program oversees the administration of bankruptcy cases, including approving organizations to provide the mandatory credit counseling. Only organizations that appear on the UST's approved list may provide the required counseling. “

Counseling and Education Requirements

As a rule, pre-bankruptcy credit counseling and pre-discharge debtor education may not be provided at the same time. Credit counseling must take place before you file for bankruptcy; debtor education must take place after you file.

In general, you must file a certificate of credit counseling completion when you file for bankruptcy, and evidence of completion of debtor education after you file for bankruptcy - but before your debts are discharged.

Pre-bankruptcy Counseling A pre-bankruptcy counseling session with an approved credit counseling organization should include an evaluation of your personal financial situation, a discussion of alternatives to bankruptcy, and a personal budget plan.

Post-Filing Debtor Education A debtor education course by an approved provider should include information on developing a budget, managing money, using credit wisely, and other resources. Like pre-filing counseling, debtor education may be provided in person, on the phone, or online. The debtor education session might last longer than the pre-filing counseling - about two hours - and the typical fee is between $50 and $100.

Important Questions to Ask When Choosing a Credit Counselor

  • What services do you offer?

  • Will you help me develop a plan for avoiding problems in the future?

  • What are your fees?

  • What if I can't afford to pay your fees?

  • What qualifications do your counselors have? Are they accredited or certified by an outside organization? What training do they receive?

  • What do you do to keep information about me (including my address, phone number, and financial information) confidential and secure?

  • How are your employees paid? Are they paid more if I sign up for certain services, if I pay a fee, or if I make a contribution to your organization?
To make this nightmare even worse, should you leave out an asset or make an honest mistake, you can be charged with bankruptcy fraud.

In most cases, CCCS will file a request for a contribution or portion of your payment from the creditor each and every time you make a payment in any program they offer, in addition to what they charge you.

It is strongly recomended you avoid Bankruptcy when you can to avoid disaster at work , home, personal finances, depression and a public record for your entire life. Though a bankruptcy will get removed from your credit after 7 or 10 years, it is still a pubilc record that is there for life.

To learn other options you should consider talking with an IAPDA Certifed Debt Arbitrator either before or after talking a Bankruptcy attorney. If your a Texas Consumer there is little chance you should file or even consider Bankruptcy.

Tom Bates, CDA
CEO, President
Absolute Debt Solutions, Inc.


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