Bankruptcy

Bankruptcy may offer some resolution to your financial worries, so you can start rebuilding your financial wellness. However, the laws have changed during the past few years making it more difficult to qualify for bankruptcy protection. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (Act) was signed into law on April 20, 2005. The new law consists of checks and balances to ensure consumers are making better informed decisions when it comes to filing bankruptcy. It requires all Chapter 7 or 13 bankruptcy petitioners to participate in credit counseling and to provide the court a certificate of completion from a U.S Trustee-approved non-profit credit counseling agency. The law also requires all consumers who file for bankruptcy to successfully complete two bankruptcy courses prior to having debts discharged. InCharge offers both the pre-filing and pre-discharge courses to meet these requirements.

Bankruptcy is a court action that eliminates your debts, stops creditors from calling you, and gives you a new start financially. When you go through bankruptcy, you are basically asking the court to forgive, or discharge, a portion of your debts.

It is very possible that bankruptcy may not be the best solution for you. It will affect your ability to establish credit during the next few years and will require that you manage your financial affairs responsibly in the future.