Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA)
Effective October 17, 2005, the new bankruptcy law requires an individual to receive a briefing from an approved non-profit budget and credit counseling agency prior to filing bankruptcy. By completing a counseling session, a consumer may have more knowledge about bankruptcy and thus may be better able to make an informed decision. In addition, before an individual can be discharged from bankruptcy, he/she will be required to participate in a financial educational course. This is to provide consumers with necessary financial skills and tools and to help avoid future financial problems.
Another significant change of the new bankruptcy code is the adoption of the “means test.” A consumer’s eligibility to file Chapter 7 depends on his/her means, which is the consumer’s income and expenses relative to local and national standards. The consumer’s attorney will need to complete the means test based on his/her financial situation prior to filing a Chapter 7 bankruptcy.
Consumer Credit Counseling Service of the CSRA, Inc. has been approved (*) by the Executive Office for U.S. Trustees (EOUST) to offer pre-filing bankruptcy counseling and pre-discharge bankruptcy education in all judicial districts in Georgia and South Carolina.
The goal of the agency’s pre-filing bankruptcy counseling is to provide an objective view of an individual’s financial situation. During a pre-filing bankruptcy counseling session, some information about bankruptcy will be discussed. The information includes what is involved in bankruptcy, the consequences of bankruptcy, and alternatives to bankruptcy. In addition, a budget analysis will be conducted and a net worth financial statement will be developed. Although the paperwork related to the initial application may be completed on this website, the actual pre-filing bankruptcy counseling session will be conducted either via telephone or face-to-face. Consumers needing pre-filing bankruptcy counseling can complete the required forms on this website and wait for our staff to contact them, or simply contact our agency to schedule a session. At the conclusion of the counseling session, a certificate will be issued indicating completion of the pre-filing bankruptcy counseling requirement. This certificate is valid for 180 days from the date and time the counseling was completed. The pre-filing bankruptcy counseling fee for a session conducted in person or over the phone is $50 per individual or $75 for a married couple participating in a joint counseling session. However, a fee of $35 per person is charged for a counseling session online. The Agency’s services are available without regards to a client’s ability to pay the fee. In limited circumstances, a client may be eligible to have this fee waived. Unless waived, the fee must be paid at the time of the counseling session. However, if a client is not able to keep his/her original pre-bankruptcy appointment, the agency requires the client pay the fee before another appointment can be scheduled. This is to ensure that valuable appointment times are not wasted. If at any point a replacement or duplicate certificate is requested, a $10 fee will be charged for each additional copy.
The goal of the agency’s pre-discharge bankruptcy education is to help consumers know what to expect following bankruptcy through education on the following topics: Choosing between “wants” and “needs”; developing sound financial habits regarding spending versus savings; examining one’s current budget, including income, expenses and net worth; developing a new workable budget (including short- and long-term goals, identification of factors that cause financial problems, and how budget adjustments can help with goal achievement); understanding the types and costs of credit, wise credit strategies and alternatives to credit, as well as warning signs of credit misuse; understanding credit reports and credit scores, in addition to consumer laws and regulations which protect consumers; rebuilding credit through good credit habits; understanding and avoiding predatory lending and/or identity theft; and understanding various types and costs of insurance and how to decide how much coverage is sufficient.
Pre-discharge bankruptcy education can be conducted either face-to-face or via the internet. A certificate will be issued for the pre-discharge bankruptcy education service upon successful completion. This certificate does not have an expiration date. CCCS charges a non-refundable fee of $30 per participant for the online course, $40 per individual/$60 per couple (attending the same course) for the face-to-face course. The fee may be waived under limited circumstances. If at any point a replacement or duplicate certificate is requested, a $10 fee will be charged for each additional copy.
(*) Approval does not endorse or assure the quality of an Agency's services.
Revised 7/2/2010