Some decisions are very hard to make as we all don't know the repercussions .In such situations proper knowledge of facts and the pros and cons associated with those decisions makes things clear. An expert advisor sometimes makes things easier. We know how to use cons and how to be prepared to face pros of such decisions.
Bankruptcy is listed in the top five life-altering negative events that we can go through, along with divorce, severe illness, disability, and loss of a loved one. Very few people that have gone through bankruptcy would say that it is just a painless cleaning of your debts, where afterwards you can easily begin your new life.
The US government has also made bankruptcy credit counseling mandatory for bankruptcy filers. So, credit counseling is now considered to be one of the most important ways to turn your financial life around.
On Oct. 17, 2005, Congress significantly changed bankruptcy laws and procedure on pre and post bankruptcy filing. Make sure any information or forms you possess have been updated to take into account these changes. The following are some of the most significant changes under the new law:
1. Prior to filing bankruptcy, you must take an educational course through an approved counseling agency. For a list of approved counselors, see the U.S. Trustee's website. In some cases, the filing fee to the court and costs of credit counseling classes can be waived under the new law depending on your income.
2. Within 45 days after the meeting of creditors, you must take a course in financial management and receive a certificate from an approved counseling agency.
3. Income and expenses can determine whether you are eligible to file a Chapter 7 bankruptcy.
4. You must provide additional documentation to the court, trustee and U.S. Trustee, such as copies of your most recent federal tax return or a transcript thereof, bank statements and pay stubs. Under the new law, while Congress has placed additional burdens on people to file bankruptcy, the benefits of filing bankruptcy are generally still available to all people.
The approved counseling agencies provide you budgeting advice to help you prevent future debts. They can also negotiate with your debtors for a payment plan which is most often a fixed amount that you pay each month over a period of time. Through this program one can learn the basic aspects of debt management. It would save you from any kind of huge mess with credit card and debt. In addition, if you have living debt problem, you should learn the aspects of Federal acts that you need to use to go for any kind of debt solutions.
Bankruptcy is listed in the top five life-altering negative events that we can go through, along with divorce, severe illness, disability, and loss of a loved one. Very few people that have gone through bankruptcy would say that it is just a painless cleaning of your debts, where afterwards you can easily begin your new life.
The US government has also made bankruptcy credit counseling mandatory for bankruptcy filers. So, credit counseling is now considered to be one of the most important ways to turn your financial life around.
On Oct. 17, 2005, Congress significantly changed bankruptcy laws and procedure on pre and post bankruptcy filing. Make sure any information or forms you possess have been updated to take into account these changes. The following are some of the most significant changes under the new law:
1. Prior to filing bankruptcy, you must take an educational course through an approved counseling agency. For a list of approved counselors, see the U.S. Trustee's website. In some cases, the filing fee to the court and costs of credit counseling classes can be waived under the new law depending on your income.
2. Within 45 days after the meeting of creditors, you must take a course in financial management and receive a certificate from an approved counseling agency.
3. Income and expenses can determine whether you are eligible to file a Chapter 7 bankruptcy.
4. You must provide additional documentation to the court, trustee and U.S. Trustee, such as copies of your most recent federal tax return or a transcript thereof, bank statements and pay stubs. Under the new law, while Congress has placed additional burdens on people to file bankruptcy, the benefits of filing bankruptcy are generally still available to all people.
The approved counseling agencies provide you budgeting advice to help you prevent future debts. They can also negotiate with your debtors for a payment plan which is most often a fixed amount that you pay each month over a period of time. Through this program one can learn the basic aspects of debt management. It would save you from any kind of huge mess with credit card and debt. In addition, if you have living debt problem, you should learn the aspects of Federal acts that you need to use to go for any kind of debt solutions.
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