Bankruptcy Secrets
Mandatory Debt Counseling
Before you can file for bankruptcy under the new bankruptcy law, you must complete a government-approved debt counseling program within the previous 6 months.
Though this may sound like a good idea for some free-spenders, many feel that scam artists will take advantage of the situation by opening poorly regulated schools that will do little more than charge the client a hefty fee and deliver little assistance.
What sense does it make to force someone to sit through tedious debt counseling when the true source of their financial problems was an illness in the family, a divorce or a job loss?
There are some rather limited exemptions to this requirement so be sure to ask your lawyer if you might escape the cost and inconvenience. If you live in a rural area far from a city, that alone may allow you an exemption. And if you're on active military service or have recently been discharged, ask your lawyer if that will also provide an exemption.
