Bankruptcy — just the sound of it evokes strong feelings in most people. Although filing for bankruptcy is rarely anyone's first choice when trying to cope with overwhelming debt, the decision to file for bankruptcy can be the right one when made with full awareness of all its consequences. Contact an experienced bankruptcy lawyer to discuss your options.
While bankruptcy is not the right answer for everyone, it has helped millions of people who have struggled with the burden of unmanageable debt. If you are thinking about bankruptcy and want to know if it may be right for you, contact an experienced bankruptcy lawyer.
The law office of Alan J. Fisher represents clients throughout South Florida and the Treasure Coast. To schedule a free consultation with a bankruptcy lawyer at our Boca Raton, Lake Worth, or Port St. Lucie law office, contact us.
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We have helped thousands of clients like yourself find solutions to debt challenges. If you are sick of the stress and worry of unmanageable debt, schedule a free consultation with an experienced bankruptcy attorney at our firm today to discuss your legal options.
Attorney Alan J. Fisher is an experienced and knowledgeable bankruptcy attorney who has been handling bankruptcy cases for more than 20 years. Mr. Fisher is the only attorney who formerly was counsel to the Standing Chapter 13 Trustee for Broward, Palm Beach, Martin, St. Lucie, Indian River, Highlands, and Okeechobee counties, a position he held for 6 years. Speak with an experienced Florida bankruptcy lawyer, contact the law office of Alan J. Fisher today.
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 Alan J. Fisher, P.A. in Boca Raton, Florida, 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 Alan J. Fisher, P.A. in Boca Raton, Florida, can be just the counselors and zealous advocates such a consumer needs in trying economic times.
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