This new law, passed by Congress and signed by President Bush in 2005, stipulates that consumers must meet several requirements before filing for bankruptcy. Even attorneys are increasing their rates because the filing procedure has become more time-consuming.
This new law mandates a more thorough examination of consumer financial records prior to filing. In accordance with this new law, they must also complete credit counseling and financial management courses prior to initiating the filing process.
The law limits the bankruptcy filing period to 180 days after completion of these seminars. This may present some challenges for those on the verge of foreclosure.
In situations where the bank is preparing to foreclose on your property, the most common course of action is to file for bankruptcy, which may delay or prevent the bank from seizing your home.
Before you can file for bankruptcy, you must complete training on personal finance and credit management. If you are facing foreclosure, you must petition the bank for more time and explain that you are required by law to do so. You may be permitted to complete the credit counseling course within 30 days of filing for bankruptcy.
Some consumers believe that these regulations are unfriendly and do not assist them in preventing property foreclosure. However, the law was revised to ensure that those who file for bankruptcy are truly unable to pay their creditors and are not merely averting their obligation to repay their debts. Training borrowers to be more responsible in meeting their debt obligations will be financially beneficial for the nation's economy in the long term.
You can, of course, always write your local Congressman or petition Congress to amend the provisions of the new bankruptcy law, but this will also take time.
Just attempt to comply with the requirements of the new bankruptcy law, as the purpose of these mandatory trainings is to help you better manage your finances so as to avoid filing for bankruptcy again. The government must step in and provide guidance to consumers on matters affecting the national economy, including the bankruptcy process.
" - https://www.affordablecebu.com/