New Bankruptcy Law Provisions
Many consumers across the United States have expressed fear or uncertainty concerning filing for bankruptcy since the new law- The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005- was passed last October. But the new law was designed to do just that: prevent bankruptcy abuse and protect consumers, not to keep those seeking debt relief from getting it. The new law, does, however, include a couple of main provisions.
Before filing a bankruptcy petition, all debtors must receive a notice from the clerk (the court) briefly describing chapters 7, 11, 12, and 13 of the bankruptcy law and the purpose and benefits of proceeding under each chapter.
Also key in the bankruptcy process since the law passed are the credit counseling and financial management courses. Before an individual can file for bankruptcy, he or she must obtain a certificate from a nonprofit credit counseling agency stating that they have received a briefing on credit counseling and budget analysis from that agency. Then, after filing bankruptcy but before discharge, the debtor must take another course, this time aimed at personal financial management.
Each course must be approved by the United States trustee and is provided over the telephone or the Internet. For more information concerning the credit counseling and financial management courses, call 1-866-859-7323.
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