Bankruptcy is the tried and true way for those mowed under with bills to seek relief. For every debt that is included in your chapter 7 bankruptcy, a fresh-start seed is planted. Unfortunately, the bankruptcy option was abused for many years before the code was updated to stop frivolous filings. While the changes in code won't stop filers who need it from filing, it pays to know about a certain pre-bankruptcy action that might not be what it seems. Read on and find out more about the credit counseling class.
Not Necessarily About Education
One of the code updates makes it mandatory for filers to take some classes. One class should be taken before filing and one after you file. One of the classes, however, is not really educational. The credit counseling class can be completed up to 180 days before you file and it may look to filers like a simple budgeting exercise. The credit counseling class is more accurately an evaluation of your financial state.
What to Expect with the Credit Counseling Class
It won't take most filers long to complete the requirements for this class but you should be very careful when filling in the budget. This is no time to be embarrassed about your bills and your inability to pay them. The budget will be evaluated by a professional credit counseling agency that has been approved by the bankruptcy system.
The counselors will be taking a look at your income and your debt obligations each month. If it appears that you make enough money to pay your debt obligations, you may have problems declaring bankruptcy. Speak to your bankruptcy lawyer about how to proceed. If you, like most filers, are unable to pay all of your credit card, mortgage, car, and other payments with the money coming in each month, you will be approved to file for chapter 7.
What Else To Know About the Class
Filers must pay a fee to take this class but you can have that fee lifted if you qualify. While the cost of the class varies from place to place, filers can expect to pay around $50 or so. You will be provided with a list of approved agencies by your lawyer or you can find them on the Justice Department website. In most cases, this class can be done by mail, in person, over the phone, or online.
Speak to a bankruptcy lawyer like those at Price James S & Associates to find out more.
After being involved in a serious auto accident with a drunk driver, I struggled heavily with getting the driver's insurance company to open a claim. When the insurance company started pushing back, I knew I needed to do something. I spent a lot of time digging through the laws surrounding auto accident claims so that I knew what my legal rights were. I even talked with an auto accident attorney. I created this site to teach others about what I learned, including my court experience. I hope it helps you to determine how you should proceed with your auto accident case.