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