Bankruptcy

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 requires that individuals receive credit counseling from a government-approved organization before and after filing for bankruptcy.  The goal of this counseling is to inform participants of all available options and to provide a comprehensive overview of an the financial situation, as well as the skills needed to prevent future financial crises.    

Pre-Bankruptcy Counseling 

In order to file bankruptcy, individuals must receive credit counseling to learn about available alternatives.  The counselor will perform a budget analysis of income and expenses so that clients can choose whether to pursue bankruptcy or explore other existing options.  Those who participate in the counseling session will receive a certificate of attendance that must be presented when filing for bankruptcy.

Post-Filing Debtor Education

After filing bankruptcy, individuals must receive credit counseling focusing on the completion of a financial management course.  The court will not discharge any debts until the counseling course has been completed.

For Pre-Bankruptcy Counseling and Post-Filing Debtor Education, CCCS charges a fee of $50 per session. In limited circumstances you may be eligible to have this fee waived. Service will not be denied due to inability to pay. 

Issues to consider

  • Bankruptcy will affect your credit history and will increase your costs of obtaining credit and loans for a mortgage, car loan, or credit cards. 
  • Filing bankruptcy is a complicated process with extensive requirements.
  • Bankruptcy is a matter of public record.

Call or email today for an appointment!

Chattanooga (423) 490-5620 | (800) 459-2227    
Huntsville (256) 881-1000 | (888) 381-8178
cccsreception@partnershipfca.com 
 

 

Chattanooga: 1-800-459-2227 | Huntsville: 1-888-381-8178 | CCCSReception@partnershipfca.com