Sader Law Firm Blog

Bankruptcy Credit Counseling

Posted on February 26, 2015 by The Sader Law Firm

Bankruptcy – Meeting the Pre-filing Credit Counseling Requirement All debtors who file petitions for bankruptcy under either Chapter 7 or 13 must provide proof that they received credit counseling from a court approved agency sometime in the 180 days prior to the date the petition was filed. Proof must be submitted to the court within 15 days of the date the petition is filed or the petition will be dismissed. There may be some exception to these rules, so check with your bankruptcy attorney if you have a problem. The purpose of the counseling is to determine if you really need to file bankruptcy or if a repayment plan of some type would work for you. Although you are required to attend the counseling, you are not required to agree to any of the suggestions that are made. However, if the counselor makes any written recommendations for how you could…
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Bankruptcy Financial Management Education

Posted on February 23, 2015 by The Sader Law Firm

Bankruptcy – Requirement for Predischarge Financial Management Education The bankruptcy court now requires two types of debtor education. Before you file your initial petition, you must take a course in credit counseling. After your file your petition, but before your debts are discharged, you must take a course in financial management from a court-approved provider. A certificate of completion of the financial management course must be filed with the court in order to obtain the final discharge order. The certificate is called bDebtorbs Certification of Completion of Instructional Course Concerning Financial Management.b If you filed for bankruptcy jointly with your spouse, you must both file a certificate of completion and attach it to Bankruptcy Form 23. The certificate must be filed no later than 45 days after the meeting of creditors was first scheduled for Chapter 7. If you miss this deadline, your petition may be dismissed without discharging your…
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Actions to Avoid Prior to Filing Bankruptcy

Posted on February 19, 2015 by The Sader Law Firm

Whether you plan to file for bankruptcy under Chapter 7 or Chapter 13, there are definite actions you need to avoid in order to be sure your debts are discharged or that the court will approve your reorganization plan. These are suggestions and not intended to be a complete list. Your bankruptcy attorney will provide you more detailed information. Avoid transfers of assets that may appear to be preferential. If you repay loans to family members within one year prior to filing your bankruptcy petition, or completely pay some creditors in the 90 days preceding your filing, the trustee has the option of filing an adversary proceeding and asking for the funds to be returned to your estate. The funds will then be used by the trustee and distributed among all your creditors. Quit using your credit cards 70 to 90 days before filing. If you max out your charge…
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