MMI has been approved by the Executive Office for U.S. Trustees to issue counseling certificates in compliance with the bankruptcy code.*
Money Management International has a team of trained counselors who will work one-on-one with you to create a detailed personal financial assessment. During the assessment, the counselor will work with you to analyze your income, expenses, assets and liabilities and provide the client with a true and accurate picture of your financial situation.
You will be taken through all of the components of a typical credit counseling session. Upon completion of the bankruptcy counseling session, you will be issued a certificate of participation. This certificate will allow you to proceed with the bankruptcy process. It is our desire to make this delivery process as smooth and efficient as possible.
The fee for the pre-filing bankruptcy counseling session by one of our professional credit counselors is $50.00. The $50.00 fee is good for either a single filer or joint filers if both attend the same session. Money Management International will waive the bankruptcy pre-filing counseling fee of $50 for debtors whose household income is equal to or less than 150% of the estimated poverty threshold for their applicable family size as published in the current Federal Poverty Levels Guidelines.
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Bankruptcy Abuse Prevention and Consumer Protection Act
Bankruptcy is always a hot topic; perhaps never more than now. It’s hard not to think about the subject in light of the recently enacted legislation that makes it more difficult for some consumers to discharge their debts through bankruptcy. According to its proponents, the legislation will address the problem of consumers’ skyrocketing debt. Over the past decade, the number of Americans filing for bankruptcy has doubled and at least $40 billion in debt is now forgiven annually.
The “Bankruptcy Abuse Prevention and Consumer Protection Act of 2005” makes some sweeping changes to the former bankruptcy law. Impacting cases filed on or after October 17, 2005, the Act includes the development of a “means test.” The Trustee or any creditor can now bring a motion to dismiss a Chapter 7 bankruptcy if the debtor’s income is greater than the state median income. Certain debtors who meet a new standard would be shifted from a Chapter 7 bankruptcy to five-year repayment plan in Chapter 13.
The bill also includes two provisions mandating financial counseling and education: Before filing for bankruptcy, consumers would be required to have a briefing on the alternatives to bankruptcy; and before receiving a bankruptcy discharge a debtor would be required to complete “an instructional course concerning personal financial management.” These provisions were included to provide debtors in bankruptcy with the skills and tools needed to avoid future financial problems.
Other changes include:
In the absence of undue hardship, regardless of the nature of the lender, student loans are not able to be discharged. This covers loans from non-governmental and profit-making organizations.
Debts owed to a single creditor totaling more than $500 for luxury goods incurred within 90 days of filing are presumed non-dischargeable; cash advances of $750 within 70 days cannot be discharged.
Under the new Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, you can file for Chapter 7 only once every eight years.
Domestic support obligations now have the first priority in distribution. Within this new first priority, support owed to or recoverable by a spouse former spouse or child is given priority over support obligations that have been assigned or owed directly to a governmental unit.
Under Chapter 13 bankruptcy, a secured creditor can retain its lien on a vehicle until the payment of the entire debt, not just the secured portion, where the creditor holds a security interest in a motor vehicle purchased within 910 days of the filing.
A debtor may only exempt up to $125,000 of interest in a homestead that was acquired within the 1,215-day period prior to the filing. According to the American Bankruptcy Association, the calculation of that amount does not include any equity that has been rolled over during that period from one house to another within the same state.