Why do you think the law requires a debtor to receive credit counseling prior to being allowed to file for bankruptcy?
Before you can file for Chapter 7 or Chapter 13 bankruptcy, you must consult with a nonprofit credit-counseling agency to see whether you can feasibly handle your debt load outside of bankruptcy, without adding to what you owe.
How soon before credit counseling should I file bankruptcy?
within 180 days
If you plan to file for bankruptcy protection, you must get credit counseling from a government-approved organization within 180 days before you file. You also have to complete a debtor education course before your debts can be discharged.
What does Case closed without discharge mean?
Cases are also closed without a discharge when the Debtor fails to complete the required debtor financial education class. The financial education certificate must be filed in every person, consumer bankruptcy case. If it is not, it will result in the case being closed without a discharge.
How much does Bothcourses cost?
When you file bankruptcy, you have to take an approved credit counseling course in California and a debtor education course. You can often take both courses online. The average cost may is around $10 to $50 per course.
What are the disadvantages of filing for bankruptcy?
Bankruptcy: Advantages and Disadvantages
| DISADVANTAGES | ADVANTAGES |
|---|---|
| Bankruptcy will lower your credit until you work to rebuild it | Missed debt payments, defaults, repossessions, and lawsuits will hurt your credit – bankruptcy can often be the easier option |
What is credit counseling before bankruptcy?
A pre-bankruptcy counseling session with an approved credit counseling organization should include an evaluation of your personal financial situation, a discussion of alternatives to bankruptcy, and a personal budget plan.
Why would a Chapter 7 be dismissed?
Usually a chapter 7 bankruptcy is dismissed if the client didn’t tell the lawyer that they owned something valuable, like a car, house or business.
What happens when a Chapter 7 is dismissed?
A bankruptcy dismissal closes your bankruptcy case, and if it occurs before you receive a discharge, it will mean that: you’ve lost the protection of the automatic stay (the order that prohibits creditors from collecting debts), and. you’ll continue to be liable for your debts.
What debts are not erased in bankruptcy?
Other Non-Dischargeable Debts in Bankruptcy 401k loans. Other government debt such as fines and penalties. Restitution for criminal acts. Debt arising from fraud or false pretenses.
What do you lose when you file Chapter 7?
A Chapter 7 bankruptcy will generally discharge your unsecured debts, such as credit card debt, medical bills and unsecured personal loans. The court will discharge these debts at the end of the process, generally about four to six months after you start.