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Bankruptcy Laws changed drastically in October 2005. 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 they are attempting to foreclose on real estate.
One of the primary new requirements is that the debtor take a "credit counseling course" and receive a certificate.
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Pre-bankruptcy Credit Counseling in San Antonio, Texas.
Apparently, the only “in person” location for pre-bankruptcy credit counseling is the Consumer Credit Counseling office. We have reviewed the website entries from the U.S. Trustee (in Nov. '05). They list many offices from around the country that make available "telephonic" and/or "internet" sessions, but CCC was the only one available for 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.
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CCCS APPROVED TO COUNSEL/EDUCATE SOUTH TEXANS CONSIDERING
BANKRUPTCY
Since the new bankruptcy reform act took effect on October 17, 2005, anyone
considering bankruptcy must first participate in pre-filing bankruptcy
counseling session from Executive Office of the U.S. Trustee approved Consumer
Credit Counseling Service of Greater San Antonio.
Like any decision there are a variety of factors to consider before filing for
bankruptcy.
CCCS
certified bankruptcy, credit and housing counselors will answer these and other
questions that people have as well as discuss other options in the 90-minute
counseling session.
What to expect in a CCCS Bankruptcy Counseling Session
CCCS knows very well that bankruptcy is a difficult decision. Our certified
counselors, in confidential face-to-face sessions, will walk each person through
their financial history, share budgeting tips, and explain the impact that
filing bankruptcy will have on their lives. CCCS considers this such an
important decision for consumers that we only offer bankruptcy counseling in
person to assure that all questions are answered fully to the each persons
satisfaction.
The counseling session includes a bankruptcy overview and coverage of terms
specific to the type of bankruptcy each person may file, (Chapter 7 or Chapter
13). An explanation of the means test is provided to help clients determine
their eligibility for Chapter 7. And because bankruptcy has economic
consequences, other alternatives are explored.
By the time people finish their CCCS sessions, they will have a clear
understanding of what to expect when they file. Their visit with a CCCS
certified bankruptcy counselor will provide them with impartial and accurate
information needed to make one of the most important decisions of their lives.
CCCS Position on Bankruptcy
Consumer Credit Counseling Service cannot answer legal questions about
bankruptcy, or advise anyone to file for bankruptcy. This decision must be made
by each person and their attorney. Here are some important facts that will
better explain the legal process.
Bankruptcy is a petition made to the court to provide relief because the debtor
has insufficient resources to repay their debts. The petition may be voluntarily
made by the petitioner or filed by three or more creditors because they hope to
recover some of their monies owed.
Once 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.
Send us an email or call at 210.979.4300 or
800.410.2227 if you would like to initiate the bankruptcy pre-filing counseling
process; we are closer than you think.
Approved to issue
certificates in compliance with the Bankruptcy Code. Approval does not endorse
or assure the quality of an Agency's services.
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Information from the Federal Trade Commission:
http://www.ftc.gov/bcp/conline/pubs/alerts/banklawalrt.htm
New Bankruptcy Law Requires Credit Counseling Before Filing
If you are considering filing for bankruptcy, you should know about one major change to the bankruptcy law: Beginning October 17, 2005, you must get credit counseling from a government approved organization within six months before you file for bankruptcy protection. You can find a state-by-state list of government-approved credit counseling organizations at www.usdoj.gov/ust. That is the website of the U.S. Trustee Program, the organization within the U.S. Department of Justice that administers bankruptcy cases.
As a result of Hurricane Katrina, the U.S. Trustee Program has temporarily waived the credit counseling requirement for consumers who are filing for bankruptcy in Louisiana and the Southern District of Mississippi. For more information, visit www.usdoj.gov/ust.
Credit Counseling Requirements
Generally, credit counseling organizations advise consumers on managing money and debts and developing a budget; most usually offer free educational materials and workshops. The credit counseling required by the new bankruptcy law can take place in person, on the phone, or online. You can expect your counseling session to last about 90 minutes and to include an analysis of your budget. The credit counseling organization can charge you a reasonable fee for its services. Credit counseling organizations on the U.S. Trustee’s list must waive the fee for anyone who can’t afford to pay. Fees may be in the $50 range, but could be higher depending on where you live, the types of services you receive, and the administrative costs of the credit counseling organization. Once you have completed the required counseling, you must obtain a certificate as proof. Check the U.S. Trustee’s website to be sure that you receive the correct certificate for the bankruptcy court where you will be filing for bankruptcy. Some credit counseling organizations may charge extra for the certificate.
Sometimes, credit counseling organizations recommend and negotiate a debt management plan (DMP) for their clients. In a DMP, you deposit money each month with the credit counseling organization, which, in turn, uses your deposits to pay your credit card bills, student loans, medical bills, or other unsecured debts according to a payment schedule they’ve worked out with you and your creditors. Sometimes, creditors agree to lower interest rates or waive certain fees if you are repaying your debts through a DMP. A DMP is not required for consumers who are filing for bankruptcy. If you do go the DMP route, you will need to provide a copy of the plan to the bankruptcy court when you file for bankruptcy.
Important Questions to Ask When Choosing a Credit Counselor
As with any important decision about your finances, it’s wise to take an active role in choosing a credit counseling organization. Once you have the list of organizations approved by the U.S. Trustee Program, call several of them to gather information before you make your selection. Some key questions to ask are:
·
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 are the qualifications of your counselors? 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 make a contribution to your organization?
·
Suppose I want only the credit counseling services and budget
analysis that are required before I can file for bankruptcy relief. How much
will these services cost? What services will your company provide? How will I
know that I have the correct certificate I need to file for bankruptcy? Does the
certificate cost extra? If so, how much?
For More Information
To learn about other changes in the bankruptcy law and how
they affect consumers who want to file for bankruptcy beginning October 17,
2005, visit www.usdoj.gov/ust/bapcpa/index.htm.
For more information about credit issues and choosing a credit counselor, visit www.ftc.gov/credit.
The FTC works for the consumer to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit www.ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure, online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.
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This information is believed to be accurate as of November 28, 2005.