Filing for bankruptcy may be the only resort left in times of financial trouble. However, to ensure that there is no abuse of this solution, the Bankruptcy Abuse Prevention and Consumer Protection Act (2005) makes it mandatory for every filer to undergo a credit counseling session.
Bankruptcy, under Chapter 7 (liquidation of assets to settle debts), is the last resort for people in financial trouble. The objective of this session is to determine whether there are other options available to reorganize the finances. If it is possible to work out a repayment plan, you may not be eligible for filing under Chapter 7.
Phoenix credit counseling is available at certain authorized centers only. Such sessions cost approximately $50. However, if your financial troubles are so severe that it is impossible to pay this fee, you may apply for a waiver. You must apply for this before you opt for this session. Once approved, you need not pay anything for the session.
Get in touch with a bankruptcy attorney to know how to approach this matter. He/she would be able to help you understand whether your situation qualifies for filing under Chapter 7. Know where to go, how to file for fee waiver, and how to handle the counseling session to make it a hassle free experience.
Nancy on March 28th 2011 in Credit Counseling
If you have an outstanding balance to pay back your credit card company, the company has the legal right to sue you. You should always show up in the hearing. Moreover you need to ensure that you have a solid defense to convince the judge that you have genuine reason for which you are unable to pay back your credit amount. Otherwise the judge or jury will grant the judgment to your credit card company.
Each state has its own different law as far as the rights (court judgment granted) of the creditor are concerned. In Florida the creditors are granted many additional collection rights following a winning Florida Credit Card Lawsuit.
Bank Levy:
A credit card company can levy you bank account by applying for an injunction of garnishment and by serving the court granted garnishment order to your bank. In that case your bank can freeze your account. The bank will then withdraw the amount you have as loan from the creditor and send the amount to your credit card company.
Wage Garnishment:
Your creditor may also be granted the right for wage garnishment. In that case your employer will send a certain percentage of your paycheck to the creditor.
Property Lien:
The credit card company you owe the loan can also set a property lien against the properties you have such as your home, your vehicle, your land etc. You can not sell the property until you pay off the credit amount. If you do not succeed to pay back the credit amount, the creditor can grab your property.
Nancy on February 28th 2011 in Credit Counseling