 |
|
Frequentlly Asked Questions
What are the most common reasons people file for bankruptcy?
Many bankruptcies are caused by “unforeseen” emergencies. In fact, the most common catalysts to payment problems are medical expenses, layoffs, divorce and overspending.
Do I need an attorney?
If you do decide to file for bankruptcy protection, you can go it alone; however, bankruptcy laws can be quite complicated. A trusted attorney may prove to be helpful.
How do I choose an attorney?
Ask someone you trust to recommend a good attorney or contact the Lawyer Referral Service sponsored by your State Bar Association. Make sure that your lawyer specializes in bankruptcy. Ask them specific questions about their qualifications and make sure you understand their fee structure. Finally, set a time to meet with your lawyer to determine if you are comfortable working with this person. Filing bankruptcy can be an emotional event so it is imperative that you have a good relationship with your attorney.
What are the downsides to filing bankruptcy?
A bankruptcy notation can remain on your credit report for up to 10 years. The most obvious ramification of filing bankruptcy is the difficulty you may have obtaining any type of new loan. And, if you are able to obtain new credit, it may be hard to find a loan with affordable repayment terms. Bankruptcy can also affect your ability to rent an apartment, obtain affordable insurance and obtain some types of employment.
What are the major changes made by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005?
Click here to read about the changes
When will the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 changes go into effect?
Generally, the new Act will apply to bankruptcy cases filed on or after October 17, 2005.
What is a means test?
According to The American Bankruptcy Association, the means test has three elements: a definition of “current monthly income,” measuring the total income a debtor is presumed to have available; (b) a list of allowed deductions from current monthly income, for purposes of support and repayment of higher priority debt; and (c) defined “trigger points,” at which the income remaining after the allowed deductions would result in the presumption of abuse.
Where do I go for the necessary pre-filing counseling and post-discharge education?
Money Management International is approved by the Executive Office of the United States Trustee (EOUST) to deliver these services. These services are offered face-to-face, by telephone and online. Call 866-889-9347 to schedule an appointment.
Should I consider credit counseling as an alternative?
It is wise to research all of your options. Call Money Management International to speak with a trained credit counselor that can help you to discover a solution to your debt problem. It may be possible to establish a repayment plan that is agreeable to both you and the lender. Some of the benefits include a lower, consolidated monthly payment and ceased collection efforts.
If I work with Money Management International, will it reflect on my credit report the same as a bankruptcy?
A notation that you filed Chapter 7 bankruptcy would remain on your credit bureau file for up to ten years. No matter what your payment record is like before you start a debt repayment program, or while on the program, the longest a creditor can report a poor pay history on your credit bureau file is seven years. Very seldom does a creditor submit a derogatory report for seven years for clients participating in a repayment program. A temporary blemish might be noted but after a client successfully completes a program; negative notations are generally removed.
|
|
| Trust the experts. Since 1958, Money Management International and its affiliate, Consumer Credit Counseling Services, have counseled and educated over one million people. Together, we can help your clients start on the path to financial freedom. |
|
|
 |
|
|
|
| |
Ask Susan
Susan works with a team of trained, certified credit counselors and will personally respond to your credit and debt related questions.
Learn More |
|
| Consumers calling for: |
| • Pre-filing counseling call: |
| 1-877-895-2227 |
| • Pre-discharge education call: |
| 1-866-745-2227 |
|
| Attorney Relations call: |
| 1-877-833-1743 |
| |
|
|
|
|
