ost Americans are aware bankruptcy receive credit
of the sweeping changes in counseling at least six months
U.S. bankruptcy law that before filing for bankruptcy. The
were made by Congress recently. law also requires that they
These changes, strongly supported receive additional counseling
by the credit card industry, were before the case is finalized and
designed to make it more that any agency providing
difficult for Americans to file counseling services must charge
for bankruptcy under Chapter 7 of an undefined "reasonable fee."
the Federal bankruptcy code. Other than that, there are no
Chapter 7 allows consumers to details yet. The portion of the
essentially have all of their law that deals specifically with
debts wiped away by the court. credit counseling hasn't yet been
While many people will still be written, and the full details are
able to file under Chapter 7, not expected to be released until
many more will have to file under mid-summer. Even those who work
Chapter 13, which requires the in the credit counseling industry
establishment of a repayment do not know what will be expected
plan. A less publicized provision of them once the law takes
of the bankruptcy bill is the one effect.
that requires debtors who are
considering filing for bankruptcy For consumers with problem debt,
to first undergo credit this confusion is only making a
counseling. What does this mean bad situation worse. In the Fall,
for consumers? more steps will be required of
those filing for bankruptcy, but
Actually, the details are not yet no one knows what those steps
known. The law, which takes are, what they will cost, or how
effect on October 17, 2005, does involved they will be. Anyone who
require that debtors considering has a current financial situation
that they feel may lead to report for at least ten years. If
bankruptcy would be well advised bankruptcy appears inevitable,
to consider filing now. however, filing now will probably
Bankruptcy should be considered a be easier, cheaper, and faster
last resort for those with than filing after the new law
problem debt, as a bankruptcy takes effect in October.
filing will stay on a credit
About the Author:
"©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including http://www.End-Your-Debt.com, a site devoted to debt consolidation and credit counseling, and http://www.StructuredSettlementHelp.com, a site devoted to information regarding structured settlements.
Source: www.isnare.com
