 Bankruptcy
The Bankruptcy Abuse and Consumer Protection Act went into effect in October of 2005. Anyone filing for bankruptcy must receive credit counseling and credit education. In July of 2005 CCCS readied itself for this task educating its counselors and preparing every office of the agency. By September we had been added to the list of approved agencies. Approval means that CCCS meets all Department of Justice standards for Bankruptcy counseling and education. The Department of Justice does not endorse or assure the quality of the provider’s service.
CCCS counselors provide budget and credit counseling and credit education for persons in bankruptcy. Following Department of Justice guidelines, CCCS counselors issue certificates of completion to clients and their attorneys following completion of the process. CCCS provides pre-bankruptcy filing and pre-discharge education to persons filing bankruptcy in the Northern and Southern districts of Iowa, Northern district of Illinois, Western district of Wisconsin, Minnesota, Nebraska and South Dakota.
From October 17, 2005 to December 31, 2007 CCCS counselors provided this service for 3,142 persons for pre-bankruptcy filing and 1,971 for pre-discharge education for a total of 5,113 bankruptcy clients.
Karen Atwood, Agency CEO, said she expected the numbers to level off. Yet each week the agency typically sees as many new bankruptcy clients or more than the week before. Bankruptcy pre-discharge classes are held twice a month. Students report they learn valuable lessons through the process and they wish they had known some of the important information earlier. CCCS counselors try to help people with ideas on saving money or getting extra jobs to earn money. Bankruptcy is a sad time for all. We try to ease the stress of it.
The process for filing for bankruptcy might seem complicated since there are some changes under the new law. For best results see an attorney. CCCS works with the required education. For that you will need to call for an appointment and provide the CCCS customer service representative with identification information. Because the agency helps you solve a legal issue of discharging your debt there is a fee associated with pre-filing and pre-discharge education. For pre-filing the fee is $30 plus $20 if the agency pulls the credit report for a total of $50. For pre-discharge credit education, the fee is $30. CCCS charges some of the lowest fees in the nation for this service. These fees can be reduced or waived if attorney and court fees are waived. Also, fees can be waived if they are a hardship as evidenced by an individual being below the poverty line in income (HUD guidelines) and requesting waiver.
The following is what you can expect when you come for bankruptcy counseling:
When you do come to see us, you will first receive a report entitled “pre-bankruptcy filing session”.
- You will then be given forms you are asked to read and sign giving our agency full disclosure of your finances so we can help you determine your course of action.
- The counselor will pull your credit report unless you bring one in that was pulled within the last three days. It will be reviewed with you and we will help you outline a budget. That part of the process is critical because the budget will help you get your finances under control.
- After that, we help you write an action plan which will enable you to stay on budget.
- The counselor will give you tips on controlling your expenses or increasing your income. She or he may even be able to help you find alternative ways of erasing debt.
- Finally, once you’ve successfully completed these steps, we will give you an original, signed certificate stating your accomplishment. We will email it to your attorney if you desire.
As we said, we are also approved for pre-discharge education in your bankruptcy process.
- In this step, you will take the two-hour course at an assigned time.
- If you come to class, or take the course by telephone, you will receive a hard copy of the educational book “Money in Motion” to keep and use for life. If you take the course via internet you may print off the “Money in Motion” book to have for your future use.
- Once you have completed this course successfully a certificate is prepared for you to take to your attorney.
- Then, and only then, can your attorney have your bankruptcy discharged.
By completing the class, receiving your certificate and following through with your attorney, you know you have survived bankruptcy and can continue your life having learned more effective ways of managing your money.
If you have questions about the process, call the Consumer Credit Counseling Service of Northeastern Iowa Bankruptcy Hotline at 1-888-235-8977 or 319-235-8900.
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