Bankruptcy Classes Is Now Mandotary
Not long ago, the United States Congress passed an overhaul of the Federal bankruptcy statues under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, which went into effect in October of that year. One of the new requirements that came out of the new act, was a mandate that everyone filing for bankruptcy would be required to attend authorized bankruptcy classes.
The debtor is the person who is going through the chapter bankruptcy filing. The new law mandates that the debtor must take two different types of classes during the course of the proceeding. The first class is for pre-filing counseling. The second required class is for pre-discharge education purposes.
During the first of the set of mandated classes, the debtor must attend a class that provides information and counseling from approved professionals before declaring for brokeness. The purpose of the pre-filing counseling class is to help the debtor gain a full understanding of the process of a new bankrupt filing, to understand the consequences that it leads to with regard to their credit score and long-term ramifications, and to investigate available alternatives to the drastic decision to file.
One aspect of the pre-filing bankruptcy classes is doing a complete budget analysis with the counselor. This is done one-on-one and at this time, the debtor and counselor look carefully at all of the financial aspects, including the earning level of the individual or couple, the debt load they have and their monthly obligations. With this information, they also consider if there are any alternative options to filing for bankruptcy.
More On: Bankruptcy Classes Now Requirement of Filing
Technorati Tags: bankruptcy, bankruptcy classes, bankruptcy classes now requirement of filing
Quickly bookmark Bankruptcy Classes Is Now Mandotary at:
Leave a Reply
You must be logged in to post a comment.
