You are afraid to answer the phone and open the mail. You are humiliated when, yet again, the salesperson tells you that your credit card has been declined. It is time to put an end to the stress of embarrassment and harassment; contact a knowledgeable bankruptcy attorney today.
Experienced Tampa, Florida, Bankruptcy Lawyers
If you or your company is considering bankruptcy, it is important that you understand your rights and your options. The bankruptcy process can be extremely complex, and having the right representation on your side can go a long way toward helping you reach your debt relief goals. At the law firm of Buddy D. Ford, P.A., we represent clients throughout the Tampa Bay area in all types of personal and business bankruptcy matters.
Contact our office today to learn more about our bankruptcy services and how we can help you. You can reach us by phone at 813-463-2835, toll free at 877-547-1561 or via e-mail.
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Contact an attorney at Buddy D. Ford, P.A., today to discuss your business or personal bankruptcy questions. Call 813-463-2835, toll free at 877-547-1561 or send us an e-mail to get started.
Get started on the road to financial freedom today. Contact the law firm of Buddy D. Ford, P.A., to find learn more about the different debt relief options available to you. Call 813-463-2835, toll free at 877-547-1561 or send us an e-mail.
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 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 at Buddy D. Ford, P.A. in Tampa, FL, can help debtors determine whether bankruptcy is the appropriate course of action for them and can advise them about the credit 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 U.S. 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 U.S. courts website. 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.
Speak to a Bankruptcy Lawyer
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 Buddy D. Ford, P.A. in Tampa, FL, can be just the counselors and zealous advocates such a consumer needs in trying economic times.
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