Just what is the purpose......

[magyar123]

....for the "credit counseling" within 6 months prior to filing bankruptcy? What is to be accomplished? Do these counselors have any say in wether your bankruptcy should be discharged or not, if they don't like what the individual says or does?

[JollyGG]

It is supposed to make sure that you are aware of all of your options, such as debt consolidation, debt settlements, debt management programs (these are pushed hard in the course). It is supposed to make you aware of the advantages and disadvantages of each option. It is supposed to also educate you on exactly what bankruptcy is and isn't.

Unfortunatelly, by the time most of us reached the point of taking the course there is usually only one option left to us.

The credit counselors do not have any say as to if you file bankruptcy or not or what chapter. Your means test and schedules do that.

[lrprn]

....for the "credit counseling" within 6 months prior to filing bankruptcy? What is to be accomplished?

This pre-filing requirement is mandated by the current bk law that went into effect in Oct 2005.

The writers of this law were creditor-biased. It's been said by some that this class was a hidden effort to make it harder to file since it would require paying to take the course and if you don't take it, your case will be dismissed.

The public face of this course is that it's supposed to help consumers understand their debt better. However by the time you take the course, it's way too late to do anything to turn your debt around. All the studies done over the last two years show that this pre-filing course is, frankly, a waste of time and money overall. Just an empty hoop to jump through to file. But it's mandated by law, so we're stuck until the law is changed. And that doesn't look to be happening any time soon.

Do these counselors have any say in wether your bankruptcy should be discharged or not, if they don't like what the individual says or does?

No, the agencies cannot stop you from filing or being discharged. Getting a certificate that you completed the course successfully is all that counts. It's just a box to check before you file, that's all. An incredible waste of time and resources all around.

[Bandit]

This pre-filing requirement is mandated by the current bk law that went into effect in Oct 2005.

The writers of this law were creditor-biased. It's been said by some that this class was a hidden effort to make it harder to file since it would require paying to take the course and if you don't take it, your case will be dismissed.

So, I have to take a course 6 months before I file & pre-file in understanding better that I have medical bills that I know I can never pay off, before I can file BK?

and if I don't take this pre file course then I cannot file (case dismissed)?

If that is correct, where do I go to sign up for the pre file course?

[Bandit]

It is supposed to make sure that you are aware of all of your options, such as debt consolidation, debt settlements, debt management programs (these are pushed hard in the course). It is supposed to make you aware of the advantages and disadvantages of each option. It is supposed to also educate you on exactly what bankruptcy is and isn't.

Unfortunatelly, by the time most of us reached the point of taking the course there is usually only one option left to us.

How long (hours/days) does this class last and how much does it cost?

[SinkingFast]

So, I have to take a course 6 months before I file & pre-file in understanding better that I have medical bills that I know I can never pay off, before I can file BK?

and if I don't take this pre file course then I cannot file (case dismissed)?

If that is correct, where do I go to sign up for the pre file course?

There are 2 separate Certs you must get.

Before you can file BK, WITHIN 6 months prior to filing, you need to have a session with a DOJ Approved Credit Counseling Agency.

There is no Course involved with the Pre BK Credit Counseling. You'll either meet face to face with a local office, or submit your info over the Net. A Credit Counselor will go over your debts and income. Look at your total situation and advise you of your options.

As JollyGG said, the pre BK Credit Counseling is to be sure you're aware of all your alternatives. A Credit Counselor may look at your situation and see some adjustments you can make to pull yourself out of the tail spin. Possibly negotiating with Creditors. Generating additional income. Debt Management Program. And the ultimate solution,........... BK.

The Post BK Debtor Education is a Class. It's supposed to be designed to teach us alternate ways to look at things.

Like getting together with the gang every day for breakfast before work costs $6/day. Times 5 days a week. Times 52 weeks a year. You're spending $1560/year without even realizing it.

Pay yourself first. Put money in savings before you ever pay a bill. Ideally you wanna try to save 10% of your Net, but anything beats nothing.

The Post BK Debtor Education Cert gets filed after you file BK and before your case can be Discharged.

[Bandit]

There are 2 separate Certs you must get.

Before you can file BK, WITHIN 6 months prior to filing, you need to have a session with a DOJ Approved Credit Counseling Agency.

There is no Course involved with the Pre BK Credit Counseling. You'll either meet face to face with a local office, or submit your info over the Net. A Credit Counselor will go over your debts and income. Look at your total situation and advise you of your options. .

Thanks for the prompt response as this is an all new thing that I have never heard before. I just went to bed tossing and turning. The quick reply will definately help
me sleep better tonight.

Just to make sure I have this one part right- when you get the first certificate it puts you within a six month time frame TO BE ABLE TO FILE. Or I suppose the certificate expires?

As JollyGG said, the pre BK Credit Counseling is to be sure you're aware of all your alternatives. A Credit Counselor may look at your situation and see some adjustments you can make to pull yourself out of the tail spin. Possibly negotiating with Creditors. Generating additional income. Debt Management Program. And the ultimate solution,........... BK.

I wonder how many of these counselors the White House owns. You know I really have my doubts that there is anything private about them or the counseling. (?)

Even if we know our alternatives. I could go for the next seven years ignoring all the bills. My brother did that with his 100,000 medical bill and today has perfect credit with all the credit
he could ever use. I wonder if they offer that
alternative?

The Post BK Debtor Education is a Class. It's supposed to be designed to teach us alternate ways to look at things.

Like getting together with the gang every day for breakfast before work costs $6/day. Times 5 days a week. Times 52 weeks a year. You're spending $1560/year without even realizing it.

Pay yourself first. Put money in savings before you ever pay a bill. Ideally you wanna try to save 10% of your Net, but anything beats nothing.

The Post BK Debtor Education Cert gets filed after you file BK and before your case can be Discharged.

I suppose the second one is done some time within that three month or so period of the initial filing.
This is new info for me. Something about it just doesn't seem right...almost like they are putting people in between the bun seeing if they squish them even harder than what they are already being squished.

The hard thing for me is this...My medical bills wont be completely in until a projected December. So, I would have to wait to show them how deep it put me in the hole. Then I have to wait another six months to file...OR can I go file immediately after I get the certificate? It is not like a six month waiting period at all because I noticed that you put in big letters WITHIN, which could mean - get the cert. to file, then go file the next day.

I bet my attorney will just tell me to go get the certificate and come back the next day, then he will file BK for me. I am not looking forward to the course part.
BK is kind of reminding me of complicated taxes mixed with taking drivers education for a traffic violation - without the actual violation.

Thanks, SinkingFast. Much appreciated.