Over the last several decades, incurring debt and spending more money than you have has become an unfortunate American tradition. People start off putting items on their credit cards and suddenly, a few years down the line they have spent tens or hundreds of thousands of dollars that they cannot pay back. Add car loans, mortgages and other personal loans to that load and people find themselves literally drowning in debt. Creditors come knocking. They want their money. Some consumers finally reach a point where they feel they have no other choice than to file for personal bankruptcy.
Bankruptcy is an official statement from the court system that declares that a person cannot repay the money that they owe to creditors. This is usually the last step that someone will resort to if they are unable to settle their debts. Filing for bankruptcy is not an easy process; in fact it is a very long and often tedious process. This is where bankruptcy counseling agencies come in.
To file for bankruptcy under Chapter 7 or Chapter 13, individuals are required to participate in a pre-bankruptcy filing counseling session with an approved non-profit budget and credit counseling agency within six months of filing. These non-profit organizations help clients understand the process of a bankruptcy filing as well as alternatives to filing for bankruptcy. The sessions typically involve an examination of what led the client to this point financially, the advantages and disadvantages of filing for bankruptcy as well as the consequences of a bankruptcy filing. Non-profit bankruptcy counseling agencies will also typically help the client understand how to budget and manage debt in the future.?? The most important thing when choosing an agency is to check if the organization appears on the approved list published by Executive Office for U.S. Trustees (EOUST).
Some people may be reluctant to physically go to a local bankruptcy counseling agency because they will have to meet their counselors face to face. Debt is a very personal issue, and it often comes with feelings of shame or embarrassment. The good news for those who might be feeling tentative about local counseling is that online bankruptcy counseling is available.
Another benefit of online bankruptcy counseling is that consumers will be able to get help at times that are convenient for them; they are not restricted by normal business hours. When you are swimming in debt, sometimes the last thing you want to do is ask for time off of work. Online bankruptcy counseling sessions can be scheduled outside of normal business hours confidentially and conveniently.
Bankruptcy counseling services are also secure and confidential.? All of the information that you give is private. Some of the information that you will have to provide is your general personal details and contact details such as your name, address and telephone number. But you will not have to give out personal information online like specific bank account or credit card account numbers.
Your current financial situation will be reviewed by a certified credit counselor. This is very important to ensure that you are eligible to file a personal bankruptcy. After reviewing your information, the counselor will either call or email you and will present you with a detailed analysis of your financial situation.
Then, you will be presented with a debt management plan, if appropriate, that will outline suggested steps moving forward. The credit counseling agency may try to help you work with your creditors to pay them back over time so that you won?t have a bankruptcy on your personal financial record. Many companies would prefer to get their money slowly over time, rather than have the debt completely discharged forever. For some clients, however, bankruptcy may be the best choice. Regardless of your personal situation, your counselor will be there for you, guiding you on what steps you should take.
If your counseling session determines that bankruptcy is the best option, you have a long road ahead. Your next step will be to seek a bankruptcy attorney to help you navigate the legal process.? Whatever you choose to do, your bankruptcy counseling session will be a critical step in moving forward with your finances, and your bankruptcy counselor will be the key to your financial future.
Author Bio ? This article has been written by Ingrid Kinsella from Advantage Credit Counseling Service specializing in providing bankruptcy counseling services. Their online bankruptcy counseling gives you the ability to begin your session in the privacy of your own home and at your convenience.
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Source: http://www.youblawg.com/law/bankruptcy-counseling
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