PRE AND POST TEXAS
BANKRUPTCY COUNSELING
REQUIREMENTS
ERIN B. SHANK CENTRAL TEXAS BANKRUPTCY ATTORNEY
As Part of the Bankruptcy Overhaul in 2005, Texas Now Requires Both A Credit Counseling
Certificate as Well as a Debtor Education Course as Part of Any Bankruptcy Filing
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Whether it was the lax underwriting efforts, the riskier loan products that
were offered or the certainty that the debt could be managed, many
consumers learned they were facing a difficult problem where the only
solution was bankruptcy protection.
As part of the bankruptcy overhaul in 2005, federal law now requires both a
credit counseling certificate as well as a debtor education course as part of
any individual bankruptcy filing. Because of the explosion in subprime lending
that helped damage the national economy in the late 1990s and up until 2008
when the recession began, the number of bankruptcies increased rapidly in
those years. Along with record levels of both credit card debt and student
loan debt, Congress sought to ensure consumers were better armed with
financial tools as they moved forward after a bankruptcy. Whether it was the
lax underwriting efforts, the riskier loan products that were offered or the
certainty that the debt could be managed, many consumers learned they
were facing a difficult problem where the only solution was bankruptcy
protection.
Note: most student loan debt isn’t dischargeable in a bankruptcy. Ms Shank
will explore those details with her clients, but you can learn more by visiting
the Student Loan Debt Collection Assistant that’s part of the CFPB family and
available for anyone who has overwhelming student loan debt.
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MANDATORY COURSES
Many Texas consumers feel they’re not necessary or they’re concerned about
the costs. These requirements are neither time consuming or do they require
the consumer to attend any seminars or meetings. This paper will discuss
these two mandatory bankruptcy compliance rules.
The cost for both of these courses – the credit counseling and debtor
education course - is included in the fees you pay to Erin B. Shank. Neither
require any upfront payments.
ABASCUS CREDIT COUNSELING
Abascus Credit Counseling was created by financial planning experts for the
sole purpose of providing
counseling for those considering
bankruptcy protection. It’s a non
profit organization that works
with our firm to help ensure our
clients are in compliance with the
new bankruptcy rules.
Specifically, this course meets the bankruptcy pre-filing requirement.
Abascus is an approved agency that will issue the necessary certificates
immediately upon completing the course. It is a simple online course you take
over the internet in the privacy of your home.
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If the bankruptcy filing includes two spouses, both are required to complete
the course, though only one fee is charged. The course is completed online
and does not require an appearance to complete a test or certification
process. The course itself takes between 60 and 90 minutes. Further, the
course can be paused and returned to later for the consumer’s convenience.
The certificate is provided via a link and a copy of proof of completion is also
forwarded to your bankruptcy lawyer. It remains valid for six months and
provided the bankruptcy is filed during this timeframe, there are no further
refresher course.
Abascus also offers a digital library of information that’s beneficial for those
wishing to rebuild their credit. Topics include Housing, Health, Utilities,
Shopping, Banking, Credit Cards and more.
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The website is easy to navigate and the course itself is easy to navigate from
page to page.
DAVE RAMSEY DEBTOR EDUCATION
As part of the second half of the requirement, consumers will be provided a
DVD or a link that allows them to view online one of the nation’s most
recognized financial advisors who presents the course in a relaxed and casual
manner. It too is easy to follow and is actually quite entertaining.
For those familiar with Ramsey, you likely are aware of his own bankruptcy
experience. Because he too filed for bankruptcy in his mid-20s, he has an
insight that others may not possess. He understands the impact of
bankruptcy and more importantly, he understands the challenges and
rewards that come from
rebuilding your credit
history.
His website also has a lot
of valuable information
for consumers, along with
a lesson breakdown, testimonies and information should you decide to attend
any of his live events held around the country every year.
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It’s been our experience that both of these courses have benefited our clients
in ways they hadn’t anticipated. They learned financial habits that they were
able to put to use as they go about rebuilding their lives and their credit.
Every staff member who works with Ms. Shank is knowledgeable on the
various bankruptcy laws, both on the state and federal levels. Each stands
ready to provide any assistance needed as clients move through the courses.
Bankruptcy is never the preferred solution, but it’s also not the
overwhelming, credit-ending nightmare it’s sometimes portrayed as. The
purpose of bankruptcy is to provide a clean slate for those who simply hit a
snag in their finances. It could be due to a job loss or illness or even a divorce.
It’s not the end of the world; but it can be the beginning of a much easier,
peaceful and worry-free life that allows for a much happier life moving
forward.
If you have any questions at any point during the counseling or throughout
the collective bankruptcy process, please contact our office. Our goal is to
ensure you’re confident and comfortable with the process from start to finish.
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About the Author
Erin B. Shank With extensive training and years
of experience helping families
throughout Central Texas, Erin B.
Shank is here to help you conquer
your financial obstacles. Whether
you need guidance and advice
regarding bankruptcy, debt, tax debt
or other financial problems, Erin and
her friendly and qualified team can
help you find solutions that will enable
you to manage or eliminate your
debt.
Erin B. Shank, P.C.
www.centraltexasbankruptcy.com
1902 Austin Avenue Waco, TX 76701 (254) 296-1161 1711 East Central Texas Expressway Suite 107 Killeen, TX 76541 (254) 690-4110