If you’re struggling to meet your financial obligations month-to-month, filing for bankruptcy is a real option. There’s often a vibe of foreboding around the idea of having to file for bankruptcy relief, but while it may not be what one wants to do (no one ever actually wants to file for bankruptcy relief), it can provide a way out of a bad place. The process of bankruptcy was designed to get debtors back on their feet – to give them a “fresh start” – and to provide fair treatment to creditors by means of debt reconstructing or asset liquidation. No matter what type of chapter of bankruptcy relief you file for, Behm Law Group, Ltd. provides legal advice and assistance with bankruptcy in Marshall, MN.
With every bankruptcy case comes a wide variety of requirements, including the requirement of each filer to undergo credit counseling within 180 days before one even files a bankruptcy petition. The credit counseling requirement has been in place in bankruptcy law since the passing of the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005 and all filers are required to take a credit counseling course in order to obtain bankruptcy relief.
Purpose
When the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) was passed in 2005, it was the sense of Congress that people had been filing for bankruptcy relief flippantly without seriously considering the possible complications in the process and without having any idea as to the possible effects on their credit rating profiles. Congress basically thought that it was too easy for people to incur a bunch of debt and then file for bankruptcy relief to get out of paying it. Congress intended the credit counseling requirement not only to provide people with insights as to the various options/alternatives to bankruptcy relief but also to provide guidance on proper budgeting techniques. The requirement applies to all debtors, not just those who owe banks and credit card companies. Another purpose for the credit counseling requirement is to determine whether your financial situation warrants a bankruptcy filing and whether someone will actually benefit from the process.
Counseling Agencies
Court-approved credit counseling agencies are your safest option to fulfill the counseling requirement. These agencies provide all necessary information and course material at reasonable fees. The fee can be based on a sliding scale that is determined by your household income. This means that if you prove your income is 150% below the poverty line for a Minnesota household of similar size, court-approved agencies must waive the cost.
If you plan to file for bankruptcy, be prepared to undergo a credit counseling course with an approved agency. With our help, finding an agency that is right for you will be easy. Contact Behm Law Group, Ltd. today at (507) 387-7200 and find the help you need before you file for bankruptcy in Marshall, MN.
