BANKRUPTCY
Before (or whether) to file -
Bankruptcy Laws changed drastically in October 2005. The Republican Congress finally milked the credit industry as much as it could, and passed the credit card industry's proposal, in the guise of "bankruptcy reform". In response, this office suggests and offers stronger Consumer Protection Litigation and aggressive Civil Court action against creditors. However, Bankruptcy is still a useful tool for defense against creditors, particularly when lenders are attempting to foreclose on real estate.
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Step 1 - One of the primary new requirements is that the debtor take a "credit counseling course" and receive a certificate.
a.) Pre-bankruptcy Credit Counseling in San Antonio, Texas. Our premier recommendation is the Consumer Credit Counseling office. They provide "in person" sessions. Cost is $45.00. They have classes every day, including Thursday evenings and Saturday. You should call them first (210-979-4300) for times and locations, but the Northside office allows walk-ins. Click to http://www.cccssa.org/display.aspx?page=Bankruptcy for more information.
b.) Online Credit Counseling. We have reviewed the website entries from the U.S. Trustee. They list many offices from around the country that make available "telephonic" and/or "internet" sessions. The link is: http://www.usdoj.gov/ust/eo/bapcpa/ccde/CC_Files/CC_Approved_Agencies_HTML/cc_texas/cc_texas.htm
Please make sure that the course you take is for "pre-bankruptcy" filing. There is another course that you have to take before the end of your bankruptcy case, but you are looking for the first one.
Below is a list of agencies that have provided pre-bankruptcy courses, but no endorsement is made by this office:
Advisory credit management. Link: http://advisorycreditmanagement.org/
Institute for Financial Literacy Link: www.FinancialLit.org They offer required Pre-filing Credit Counseling ($50) and Post Filing ($50), either online, or by telephone at 1-866-662-4932.
VERY IMPORTANT! - The 2005 Bankruptcy Amendments also require a POST FILING - PRE-DISCHARGE COURSE!!! Under Chapter 13, you might satisfy this requirement with a course from the Trustee, but if you don't take it in a Chapter 7, they will deny you discharge(!) so take a qualified course from some entity. If debtor fails to take the course AND file the certificate, she will be denied discharge under Title 11, Chapter 7, Subchapter II, ยง 727. Here are some options:
Debtorwise Org. www.debtorwise.org.
Start Fresh Today: https://www.startfreshtoday.com/
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Like any decision, there are a variety of factors to consider before filing for
bankruptcy.
Chapter 7 (straight bankruptcy) is filed, debtors assets are protected by
the court and cannot be seized. All nonexempt property is liquidated and equally
distributed to their creditors. Sixty to ninety days after the bankruptcy is
filed the court discharges the debtors of their previous debts. However, a
bankruptcy may be denied if debtors hide or fail to report all their assets.
Chapter 13 (wage earners bankruptcy) gives debtors 60 months to repay their
debts. (Repayment plans may vary in every county). To qualify for this type of
bankruptcy debtors must have a regular source of income. The repayment plan
requires debtors to make payments based on their income minus food, shelter, and
other basics. The trustees distribute the payment to the debtors creditors and
retain a minimal fee for their services.
Anyone considering bankruptcy is advised to contact their attorney for further
explanation.
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Free Credit Reports
DO NOT GET A "FREE CREDIT REPORT" from anywhere except www.annualcreditreport.com
Other offers for free credit reports are usually offering other services which may be free for a time, but then require credit card purchases, and are impossible to stop.
Be prepared to answer a few questions about your current financial situation. This helps the site determine if you are the proper person requesting the information.
Otherwise, you can call 1-877-322-8228 and request the information.
You are entitled to one free report annually from each reporting company, Equifax, Experian, and TransUnion.
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Bankruptcy Attorney's fees, Western District of Texas filings, 2010.
Chapter 13 Typical, non-business filing and plan preparation, representation at creditors meetings, etc. can be started for a minimal payment. Do not hesitate to call an attorney, and stop foreclosures and repossessions because of a present lack of cash. Because the plan lasts for 36 to 60 months, and because of the demands of the new bankruptcy "reform" law, we have raised the total attorneys fees for most cases to $3200. Typically, we need to get the (current) $274 filing fee and $400 retainer at the time of filing. Most borrowers have saved some house payments that the mortgage company has rejected as part payment, so if those are used as additional cash deposit, the office can reduce the total fees by a 5% discount for each $100 of additional retainer.
Chapter 7 (liquidation). Typical, non-business filing, representation at creditors meetings, etc. can be filed for $1350 plus the filing fee (currently $299). Chapter 7 cases are usually not done on an emergency basis (as are, sometimes, Chapter 13 cases ). They amount to obtaining a discharge from dischargeable debts, so it is simply a financial decision as to whether to take the route of bankruptcy liquidation. We can start the Chapter 7 analysis for a payment of $350. With that, we can pull the credit reports, and begin to enter information into the bankruptcy software. The additional amounts for filing can be paid periodically through a short period of time, with all payments made prior to the filing of the Chapter 7 case. (Creditor relief - after this initial consultation and deposit, the client/debtor may refer calls from unsecured creditors (i.e. the harassing phone calls) to this office while we are assembling information. This usually results in substantial relief from these calls. In the event that the client declines to go forward with the case, the payments are retained by this office for the preparation and the fielding of creditor calls. The input of information may result in a recommendation that the client has to file Chapter 13 (because of the provisions of the Bankruptcy Reform Act). If this is the case, all payments will be credited as payment on the Chapter 13 case, of course.
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If you have hired this office and attorney, please see this page for further client information and questions:
Bankruptcy - Client Information