In 2005 president George W.  Bush worked with Congress to pass the Bankruptcy Abuse Prevention and Consumer Act of 2005 known as the BAPCPA.  There are three main areas to the law that were put in place which directly changed and affected the way bankruptcy is handled from that point forward.  In the past you simply filed and were for the most part approved and pushed through.

With the new law in place you now have 3 additional areas that you must go through before being qualified for bankruptcy.  The Ticket In, Means Test, and Ticket Out Debtor Education sections have been added to the process.  These are mandatory sections to the process which must be completed for total approval.  As tedious as it sounds they aren’t that bad  and in some cases are even helpful to you.

The Ticket In Section must be completed a minimum of 6 months or less before applying for bankruptcy.  This is a program based on credit counseling and it must be done through a government approved non-profit agency that is licensed to perform the course. Areas covered would include budget planning, debt management, and they will help you evaluate your financial situation.  Take advantage of the time to plan your future. Read the full article →

Credit Counseling for Bankruptcy like it or not is here to stay. It is now part of the new chapter 13 bankruptcy rules as well as chapter 7 for anyone who files.. You must go through a certified credit counseling program in order to be approved for bankruptcy.  In most cases the class isn’t going to be anything revolutionary unless you are among those who have next to no sense when it comes to knowing what the root problem was in causing your situation.

Obviously the issuer of counseling course must be approved from the government. You must complete one class within a six month period before filing your bankruptcy and another class within six months after your bankruptcy has been discharged.  There might be some benefits to this new bankruptcy rule for some people but unfortunately statistics show that hasn’t had any sort of impact is lessening the amount of bankruptcies being filed as of late. This may be in part that many offer an online version of the course which many can skim over and pass without much effort.

During the counseling process that takes place before your bankruptcy is discharged, you will do a personal evaluation on your finances and look at options other than bankruptcy if there are any. Now mind you when they say its a counseling process there typically isn’t a person you’re going to be talking with in person or over the phone unless you want there to be. Most just simply opt for the online version which includes a video and periodic quizzes that a elementary kid could answer. Read the full article →

The best bankruptcy advice comes in the form of being aware of recent law changes. In between the years of 1994 to 2004 the rates of those filing for bankruptcy started to soar due to the fact that credit had became extremely easy to qualify for.  The rates of those filing for bankruptcy started to cause many to become very alarmed as rates skyrocketed to heights never before seen.  Well someone had to step in and relook at the situation to conclude what was causing such a tizzy. It became very clear that something needed to be done as to many people and businesses where filing for illegitimate reasons.

The good old government concluded that passing a new law would curb the problem. So they decided to pass the bankruptcy abuse prevention and consumer protection act. After this went into effect in 2005, the law caused quite a shakeup. Many proceedings changed as it became a bit more difficult to qualify from what it had been previously.

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