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Bankruptcy FAQ's
I want to file for Bankruptcy what do I need to do?
I'm filing bankruptcy & my attorney says I need to take some classes. Do you offer them?
What are my requirements with the new bankruptcy laws?
Can I get legal advice at CCCS?
Well then how do I find a good bankruptcy attorney?
What is the cost of the bankruptcy pre-filing and debtor education sessions?
What are the guidelines to apply for a fee waiver?
How will I receive my certificate?
Is there an expiration date for my certificate?
What is the difference between Chapter 7 and 13?
Should I file a chapter 7 or chapter 13?
Can we advise a client on whether or when to file bankruptcy?
Can a credit counseling agency's d/b/a appear on the credit counseling certificate?
Can credit counseling agencies issue blocks of certificates to attorneys or third parties?
Can a debtor take both mandatory classes before filing bankruptcy?
What determines an individual's "ability to pay"?
I want to file for Bankruptcy what do I need to do?
Make an appointment for an in-person or telephone counseling session. You will need to provide a picture ID, last year's tax return, proof of income for the past 6 months, and a recent credit report. You can obtain a copy of your free credit report at www.annualcreditreport.com
I'm filing bankruptcy & my attorney says I need to take some classes. Do you offer them?
Yes.
Phone Course--We offer conference call education courses each week. Call us (877.275.2227) to learn more about this option or send us an email by clicking here.
On-Line Course--We were recently approved to provide Bankruptcy Education utilizing a nationally recognized on-line education format. Click here to view our online bankruptcy course.
**Attention - The on-line bankruptcy course is available only to those fulfilling their pre-filing education obligation and has filed in Montana or Wyoming. You must have already filed for bankruptcy and have a valid bankruptcy case number.
In Person--We hold classes in our Montana offices on the third Thursday of each month from 5:30 to 7:30 p.m. Call us (877.275.2227) to learn more about this option or send us an email by clicking here.
What are my requirements with the new bankruptcy laws?
Prior to filing for bankruptcy, you must attend a 90-minute pre-filing counseling session. Our counselor will help you develop a budget that is right for you. We will also answer questions you may have regarding finances and long-term money management.
After completing this session, you will receive a certificate of completion which is now required for filing bankruptcy. After you have filed bankruptcy and prior to discharge, you need to attend a two-hour education course. This course provides you the necessary tools to regain financial stability after bankruptcy. You will receive a certificate of completion that you are required to show before the court makes a decision to discharge your debt.
Can I get legal advice at CCCS?
No. We are consumer credit counselors - not attorneys. We can tell you what some of the effects of non-payment and bankruptcy might be. If you are considering any sort of legal action, including bankruptcy, make an appointment with an attorney (preferably one who charges no initial consultation fees).
Well then how do I find a good bankruptcy attorney?
We cannot refer you to any "for profit" service providers. You can call the Montana Attorney Referral number, 406-449-6577 to seek assistance.
What is the cost of the bankruptcy pre-filing and debtor education sessions?
There is a $50 fee per person for each counseling or education session.
You can pay for your session via a cashier's check, money order, or a charge to your debit card.
What are the guidelines to apply for a fee waiver?
In order for a fee waiver to be considered you must be receiving pro bono services from your attorney, or filing pro se with the assistance of Montana or Wyoming Legal Services.
How will I receive my certificate?
Your certificate will be delivered to the e-mail address you provide in your session and/or to your home address. If you provide your attorney's fax number, a copy of your certificate will be faxed to them.
Is there an expiration date for my certificate?
Credit counseling certificates expire after 180 days. Debtor education certificates do not expire.
What is the difference between Chapter 7 and 13?
Chapter 13 or "reorganization" allows debtors with a steady income to pay off all or part of their debt over a 3 to 5 year period instead of surrendering property.
Chapter 7 or "straight bankruptcy" is the most drastic type of bankruptcy. Debtors turn over all of their assets to a court representative for distribution to creditors. Unlike Chapter 13, there is no repayment plan. The court will then declare that legally, the debtors are no longer in debt.
Should I file a chapter 7 or chapter 13?
You should seek the advice of your attorney to determine if you should file chapter 7 or 13.
Can we advise a client on whether or when to file bankruptcy?
No. Only the consumer or his/her attorney can determine if and when to file bankruptcy. Advice on the timing and necessity (or lack thereof) of a bankruptcy may constitute legal advice, which could be deemed to be the unauthorized practice of law and actionable by state authorities.
Can a credit counseling agency's d/b/a appear on the credit counseling certificate?
No. The name of the approved agency must appear on the certificate just as it appears on the US Trustee Program's Web site. This will allow the US Trustee to insure that only approved agencies are issuing certificate.
Can credit counseling agencies issue blocks of certificates to attorneys or third parties?
No. Agencies may not issue blocks of certificates to attorneys or third parties. This procedure is highly inappropriate and jeopardizes the integrity of the counseling process. Such conduct may result in revocation of an agency's approval to provide counseling in any district.
Can payments for a debtor education course be made by a person other than the debtor (e.g., payment by the debtor's attorney)?
The US Trustee program does not object to payments for a debtor education course that are made by a person(s) other than the debtor, so long as such payments are reasonable and comply with applicable laws, regulations, and ethical requirements. This position assumes that payments are fully disclosed so to not adversely affect the quality of the services rendered.
Can a debtor take both mandatory classes before filing bankruptcy?
No. The Bankruptcy code requires (with some exceptions) completion of credit counseling BEFORE an individual files for bankruptcy, and that debtor education take place AFTER the bankruptcy case is filed.
Accordingly, it is not appropriate for an approved agency to offer both services to clients in one pre-bankruptcy session.
What determines an individual's "ability to pay"?
Ability to pay must be determined on a case-by-case basis. Completing a budget analysis through counseling determines the client's financial situation and therefore, his/her ability to pay.
Do a husband and wife need separate financial counseling sessions if intending to file a joint bankruptcy petition?
Although a husband and wife may attend the same counseling session, each must obtain counseling and be issued separate certificates.
Do individuals with mostly business debt, rather than personal debt, need to obtain credit counseling prior to filing a chapter 7 or chapter 13 bankruptcy?
Yes. Individuals who have mostly business debt still must obtain credit counseling prior to filing bankruptcy.
What about individuals having mostly business debt, rather than personal debt who intent to file a Chapter 11 bankruptcy. Does the individual have to obtain credit counseling prior to filing bankruptcy?
Yes. Individuals who file Chapter 11-Business Reorganization must obtain credit counseling from an approved agency.