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    Contemplating Bankruptcy?

    More Than One Way Out

    Bankruptcy pre-filing counseling       

    Online  

    In person 

    By Telephone - Call 1.800.410.2227

     

    Live a Richer Life

    Bankruptcy pre-discharge education       

    Online  

    In person

     

     

    Is it right for you?

    What's the difference between Chapter 7 and Chapter 13?

    How long will a bankruptcy appear on your credit report?

    What can you do to recover?

    Do you have to pay for bankruptcy counseling/education?

    More Than One Way Out - Bankruptcy pre-filing counseling

    Live a Richer Life -  Bankruptcy pre-discharge education

    Here, you’ll find educational information that will give you further insight on bankruptcy even before completing the pre-filing counseling session.  Although Bankruptcy Education is designed to provide information that will help you decided whether or not bankruptcy is the right choice for you, the information provided through this education program is not legal advice and not intended to take the place of guidance and advice from an attorney.

     

    What is Bankruptcy?

    Bankruptcy is a legal proceeding filed in the United States Bankruptcy Court that permits you to obtain a discharge of your obligation to pay certain debts. The bankruptcy laws are intended to allow an honest but unfortunate debtor an opportunity to get a "fresh start". Most people who opt to file for bankruptcy do so with the assistance of a legal professional.

    The two most common types of consumer bankruptcy are Chapter 7 and Chapter 13.

    Bankruptcy Prevention and Consumer Protection Act of 2005

    On April 20, 2005 President Bush signed the Bankruptcy Prevention and Consumer Protection Act into law. This new legislation consists of checks and balances to ensure consumers are making better informed decisions when it comes to filing bankruptcy. The law requires all Chapter 7 or 13 bankruptcy petitioners to participate in credit counseling and provide the court a certificate of completion from a U.S. Trustee-approved non-profit credit counseling agency.  It also requires all consumers who file for bankruptcy to successfully complete a U.S. Trustee-approved debtor education course prior to discharge of their debts.

    You can read more on the Bankruptcy Prevention and Consumer    Protection Act here.

    Means Test

    Another change enacted by the Bankruptcy Abuse Prevention and Consumer Act of 2005 is the requirement of a means test. It is used to identify debtors who have the financial capacity to pay some money to their creditors. The means test compares the income of the petitioner to the median income in their state.  Based upon this test, certain petitioners may be required to repay a portion of their debt under Chapter 13 instead of a complete dissolution under Chapter 7.  An attorney can conducts the means test for those filing bankruptcy.

    Chapter 7 Bankruptcy

    Under Chapter 7 Bankruptcy, a Trustee is appointed to sell or liquidate any of the debtor's "non-exempt" assets or property in order to raise cash to pay off the debt.

    "Exempt" assets are property of the debtor that the law specifically allows the debtor to keep.  "Non- exempt" property includes assets or belongings that are not considered protected under bankruptcy law. Consumers must provide detailed financial information when filing bankruptcy so the court can determine which assets may be sold.  

    Although many unsecured debts may be discharged in a Chapter 7 bankruptcy, not every type of debt is dischargeable.  Once a petitioner files for a Chapter 7 bankruptcy, creditors will cease efforts to collect on dischargeable debts.

    A Chapter 7 bankruptcy will remain on your credit report for 10 years.

     

    Chapter 13 Bankruptcy

    In a Chapter 13 Bankruptcy, an individual with regular income repays all or a portion of his or her debts over a three-to-five-year period through a monthly payment plan approved by the Bankruptcy Court.  For that reason, a Chapter 13 case is sometimes referred to as a "wage-earner plan".  The Chapter 13 Trustee does not take possession of non-exempt assets but supervises the case and administers the payments to creditors under the Chapter 13 plan.

    This type of bankruptcy will remain on your credit report for 7 years.  

    Major differences between Chapter 7 & 13 Bankruptcy

    The major difference between a Chapter 7 and 13 is the "repayment plan".  A Chapter 13 bankruptcy allows debtors with steady income to pay off all or some of the debt within a given time period.  A Chapter 7 bankruptcy requires no payment plan, but the surrender of the debtors non-exempt assets to a court Trustee for liquidation of the items.

    Consequences of Bankruptcy

    Although bankruptcy is designed to give debtors a "fresh start", the impact of bankruptcy will vary with individual circumstances, and the consequences will be greater for some than for others.  Depending on your personal situation and the laws of your state, you may have to liquidate some of your property and assets.  A bankruptcy filing will become part of your credit report for up to 10 years and will make it more difficult to rent an apartment, buy or rent a car, or even buy insurance, because you will be considered a higher risk in any transaction that involves credit or requires you to make a regular series of future payments.  There is a good chance that your credit cards will be cancelled if you file for bankruptcy, which may complicate otherwise routine transactions that require a credit card for a deposit or as a form of security.  And, because bankruptcy is a matter of public record, you have to consider whether it might carry a stigma in your community or interfere with employment prospects in you chosen field.  

    Bankruptcy Education

    In order to make better informed decisions regarding bankruptcy, consumers must arm themselves with objective, factual information.

    Consumer Credit Counseling Service of Greater San Antonio and Budget & Credit Solutions are both approved by the Executive Office of the U.S. Trustee (EOUST) to provide bankruptcy petitioners the required pre-filing counseling session and pre-discharge education course. Both agencies will provide the consumer with certificates of completion issued by EOUST.

    *Approved to issue certificates in compliance with the Bankruptcy Code.  Approval does not endorse or assure the quality of an Agency's services.  These services may be availbale for free or at a rate based on the debtor student's ability to pay.  

    Position on Bankruptcy

    CCCSSA counselors do not answer legal questions about bankruptcy, or advise anyone to file for bankruptcy.  This decision is made by each person after consultation with an attorney.  CCCSSA  counselors provide impartial and accurate information.  The CCCSSA staff does not refer consumers to attorneys or attorney offfices.  

    Below you will find the cost and description of the required bankruptcy education.  We provide free counseling and education to consumers who are receiving free legal services from their attorney or are receiving Social Security Desability income payments.  If you believe you qualify for free services under one of these categories, please notify our agency for instructions on how to provide proof of your qualifications.

    The counseling and education charges are per household, which covers upto two people.  

    Affirmation

    Affirm that you are the person(s) identified and commit to personally completing this process.

    I certify that all the information provided to CCCS throughout my counseling session is true, correct, complete, and offered in good faith.

    I also certify that I will complete this counseling session myself. 

    By checking this box, I am indicating that my attorney or my attorney's representtive is helping me complete this session.  (Please check as appropriate)

    I understand that it is my personal responsibility as a client of CCCS to participate in and complete the counseling session.  I understand that knowingly making a false or fraudulent statement, misrepresenting my identity or not participating in my counseling session is a violation of the requirements for obtaining a certificate and may result in it revocation.

    I affirm the statements above          I affirm the statements above

                  (Primary person)                                                      (Second person)

    More Than One Way Out

    Online $50        In our office or by telephone $55

    Pre-filing counseling (More Than One Way Out) can be completed online or in a confidential session with a Certified Consumer Credit Counselor. Click here to complete your online pre-filing counseling now or follow these links for instructions to complete the face-to face pre-filing counseling session. To request a telephone counseling session please call 1.800.410.2227.

    Pre-filing with Consumer Credit Counseling Service of Greater San Antonio. (San Antonio, Kerrville, Laredo)

    Pre-filing counseling with Budget and Credit Solutions of Austin, Texas. (Serving Austin and surrounding areas)

    Live a Richer Life                               

    Online $50        In a classroom $40

    Before completing the bankruptcy process, it is important to know how to recover and rebuild your finances after this experience.   The Pre-discharge debtor education course(Live A Richer Life) can be completed in a classroom environment and will teach you how to rebuild credit, develop sound financial habits, identify problems and create a budget that truly works, understand and use credit, avoid predatory lending, decide how much insurance is enough, and use resources available to you.

    Click here to register now for Live a Richer Life in San Antonio.

    Click here to register now for Live a Richer Life in Laredo.

    Click here to register now for Live A Richer Life in Austin.

    Click here to register now for Live A Richer Life in Kerrville.

 

 

 

More Than One Way Out - online bankruptcy pre-filing counseling

More Than One Way out is offered by CCCSSA or Budget & Credit Solutions for Texas residents only. Click here to find an NFCC agency in your area.

Your online counseling session has been designed to gather all the pertinent information about your financial situation, to give you an opportunity to interact with a professional, Certified Credit Counselor, and to provide you with a list of possible options to consider for resolving your financial situation.

We are committed to providing you with the help you need to objectively assess your situation and make an informed decision about how to best reach your financial goals. We are here to assist you, regardless of how you decide to handle your situation.

To meet the requirements for pre-filing bankruptcy counseling, you must fully participate in this online session and provide the requested information. At the completion of your session, we will issue you a certificate that you will need to file with the court should you elect to file for bankruptcy protection.

Please have the following items before beginning your session:

                  Documentation of your monthly income

                  List of household expenses

                  Your most recent creditor statements

Please be advised that in most cases you will be charged $50.00 for this counseling service and the bankruptcy certificate. If you are taking the course jointly, you must call 1.800.410.2227 to receive instructions on enrolling the second user. Services are provided without regard to the ability to pay the fee.Many consumers seeking this counseling have already consulted with an attorney prior to starting this process. If you have done so, please also have available:

                   Your attorney's name

                   Your Attorney Firm Code (if your attorney gave you this information)

Statement of Counseling Services

Please read the following statements carefully so that you will understand the procedures for the counseling session.  For simplifications the singular is used even when the plural may apply.

 

1.       I understand that a certified consumer credit counselor will conduct the interview. In the event a certified consumer credit counselor is not available, a certified consumer credit counselor will review all assessments conducted by a qualified professional counselor.

 

2.       I have been provided with the CCCS Bill of Rights and understand that in the event I am dissatisfied I can utilize this complaint resolution process.

 

3.       I understand that most of Consumer Credit Counseling Service’s (CCCS) funding comes from voluntary contributions from creditors who participate in Debt Management Plans (DMPs).  Since creditors have a financial interest in getting paid, most are willing to make a contribution to help fund CCCS. CCCS will work with all my creditors regardless of whether or not they contribute to CCCS. 

 

4.       I hold CCCS, its employees, agents and volunteers harmless from any claim, suit, action or demand of my creditors, myself or any other person resulting from advice or counseling. Nothing herein shall apply to actions or claims under the provisions of the United States Bankruptcy Code, 11 U.S.C. Sec. 101 et seq.

 

5.       I will be given a written assessment outlining a suggested client action plan that will be based on the following options:

·         I will handle my financial concerns on my own.

·         I may choose to enroll in the agency’s DMP.  A DMP serves the dual role of helping me repay my debts and helping creditors receive the money owed to them.  My participation in a DMP may impact my credit report. CCCS charges a $20.00 non-refundable start-up fee anda $25.00 monthly processing fee. Fees may be waived in certain circumstances if they would jeopardize participation in the program or cause undue hardship.

·         A counselor will explain the Settlement option, which I can use to negotiate with my creditors.

·         A counselor may answer general questions about bankruptcy, but may not give legal advice.  If I want legal advice I will be referred for appropriate assistance. Specific referrals can not be given.  While an attorney can make a recommendation to file bankruptcy, it is a personal choice based on individual circumstances.  I will inform the agency of the decision if I file bankruptcy. CCCS charges a $55.00 fee for Pre-filing counseling services per household which covers up to two people. Fees can be paid by check or money order. Services are provided without regard to the ability to pay the fee.

·         I will be referred to the other services of the organization or another agency or agencies as appropriate that may be able to assist with particular problems that have been identified.

 

6.       At some time in the future, CCCS may provide information from our file to a thirdparty, who will ensure confidentiality, in order to evaluate CCCS staff andservices.

 

I have read and understand the statements and disclosures made above.
Please ACCEPT.

I currently am not ready to start.  Please take me back HOME to CCCSSA or Budget & Credit Solutions.

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