In difficult economic times, bankruptcy filings increase. According to the Administrative Office of the US Courts, over 1.1 million people filed for bankruptcy in 2008, up 31% from 2007. Contact a knowledgeable and experienced attorney who can help guide you through the complicated maze of overcrowded bankruptcy courts.
Experienced Chapter 7 and Chapter 13 Bankruptcy Attorneys
Legal Solutions When Debt Becomes Overwhelming
When personal and family debt become overwhelming, bankruptcy protection can provide timely, long-term relief. Chapter 7 and Chapter 13 provide for the reduction of debt through the sale of unsecured/non-exempt assets or designation of a repayment plan to be approved through the bankruptcy courts.
At the Lindenhurst, New York, law firm of Phillips, Weiner, Artura & Cox, we have provided bankruptcy legal services to the residents of Long Island for 40 years, and can meet with you one-on-one and for a free initial consultation to discuss your concerns and determine if either bankruptcy plan will serve your needs. Contact us at 631-226-2100.
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Do you have questions regarding Chapter 7 or Chapter 13 bankruptcy protection? At the Lindenhurst, New York, law firm of Phillips, Weiner, Artura & Cox we have provided bankruptcy legal services since 1969. For experienced help in reducing crushing debt, contact us at 631-226-2100.
You do not have to tolerate creditor harassment. Through Chapter 7 or Chapter 13 bankruptcy protection you can immediately cease contact by creditors. For more information, call our experienced lawyers at 631-226-2100.
Credit Counseling Requirement in Bankruptcy
In 2005, Congress passed and the president signed the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), a bankruptcy reform law. One of the new requirements BAPCPA imposes on a new bankruptcy debtor is to receive credit counseling from an approved credit counseling agency before the bankruptcy filing. A bankruptcy lawyer experienced in consumer credit law, like one from Phillips, Weiner, Artura & Cox in Lindenhurst, New York, can help debtors determine whether bankruptcy is the appropriate course of action for them and can advise them about these new counseling requirements.
Credit Counseling Briefing
Specifically, a debtor must receive an "individual or group briefing" from a nonprofit budget and credit counseling agency within 180 days before filing for bankruptcy. The briefing can be in person, by telephone or via the Internet. The law provides that the briefing must "[outline] the opportunities for available credit counseling and [assist] such individual in performing a related budget analysis." If a debt management plan is developed in the course of the required counseling, it must be filed with the bankruptcy court.
Approved Credit Counseling Agencies
In most states, the US trustee maintains a list of approved credit counseling agencies for use in the court districts in those states. In Alabama and North Carolina, this list is approved by bankruptcy administrators. The list of approved agencies is available on the US courts Web site. An approved agency is first on the list for a six-month probationary period, renewable in one-year increments. Approval can be revoked at any time. Interested persons can ask the court to review the approval of any agency.
To obtain approval, an agency must have qualified, experienced counselors who provide adequate counseling and have no financial interest in the counseling outcome; handle client funds securely; maintain an independent board of directors; charge reasonable and sliding scale fees; make certain disclosures; possess financial security to oversee repayment plans of clients; and maintain "quality, effectiveness, and financial security of the services it provides."
Exceptions to the Credit Counseling Requirement
There are some exceptions to the counseling requirement for certain debtors in particular situations. First, the court may waive the counseling requirement if there are "exigent circumstances" and the debtor made a request for counseling that an agency was unable to provide within five days. Second, a debtor is excused from the requirement if incapacitated by mental illness or deficiency, if physically impaired such that he or she is unable to participate with reasonable effort or if on active military duty in a combat zone. Third, counseling is not required if the trustee or administrator in a particular court district determines there are not enough approved credit counseling agencies available.
Criticisms of the Requirement
The credit counseling requirement has many critics. One argument is that it is too little and too late for a debtor in bad enough financial shape to be on the brink of bankruptcy. Supporters of the requirement feel that it will weed out people who are in financial crisis because of their own voluntary behavior; however, counseling agencies have found that most people counseled have had legitimate problems not caused by their own recklessness. Dismissal of a bankruptcy case for not obtaining required counseling is seen by some as harsh treatment for a debtor facing, for example, foreclosure on a modest home. Finally, depending on the interpretation of the judge, the dismissal could weaken the automatic stay in a subsequent bankruptcy filing.
Conclusion
Consumers considering bankruptcy as a future option should investigate the credit counseling requirement well before the anticipated bankruptcy filing. The experienced consumer and bankruptcy law attorneys at Phillips, Weiner, Artura & Cox in Lindenhurst, New York, can be just the counselors and zealous advocates such a consumer needs in trying economic times.
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