Bankruptcy Law Change:Since the enactment of the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), filing for bankruptcy has become more complex. One of the most important changes to the bankruptcy law was the requirement of a “means test” for Chapter 7 petitioners. The means test is used by the courts to determine eligibility for Chapter 7 or Chapter 13 bankruptcy. To apply the means test the courts first look at the debtor’s average income for the 6 months prior to filing and compare it to the median income for your state. If the income exceeds the median, then the intention of the means test is to decide whether a petitioner has enough disposable income to pay back debts. If the disposable income after certain allowed expenses exceeds a certain amount, a Trustee or creditor may file a motion to dismiss a Chapter 7 bankruptcy or convert the bankruptcy into a Chapter 13 case. Many other changes have been made since the enactment of BAPCPA. Consult legal counsel for details on other changes which may affect your decision to file bankruptcy. Any individual who decides to file bankruptcy must now undergo the two mandatory requirements below in order to get debts discharged:

  • Requirement 1: Pre-petition Credit Counseling
    An individual may not be a debtor bankruptcy unless they complete an individual “Budget Briefing Session” with an approved, Nonprofit Budget and Credit Counseling Agency, like Credit.org, during the 180-day period preceding the date of filing the bankruptcy petition. A certificate of completion must be obtained once they have completed the Budget Briefing Session in order to file a bankruptcy petition. Click here to view the counseling fee outline.

    To start your counseling session, call us at:
    1-888-4BK-FILE (1-888-425-3453)

    (Certified Counselors are available 7 days a week)Monday – Friday 7:00 a.m. to 8:00 p.m.
    Saturday 8:00 a.m. to 4:00 p.m. and
    Sunday 10:00 a.m. to 5:00 p.m.
    Note: All times are Pacific Standard Time.
  • Requirement 2: Debtor Education Course
    Once an individual has completed their Budget Briefing Session and filed their bankruptcy petition, that individual must complete an approved personal financial management instructional course by an approved educational provider, like credit.org, before they can be eligible to receive a bankruptcy discharge. Credit.org has been approved by the Executive Office for United States Trustees to provide the required Pre-petition Credit Counseling, Pre-discharge Debtor Education and issue certificates in compliance with the bankruptcy code under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 for residents in all judicial districts (states) except the following: Alabama and North Carolina.

    Click here to view our approved states.

    Approval does not endorse or assure the quality of agency’s services. Please feel free to email us with any questions you might have at bkfeedback@bkhelp.org. Please check back often as we will continue to update this section to provide valuable information and resources.

*Approval by the EOUST to issue bankruptcy certificates evidences completion of a budget and credit counseling and debtor education course in compliance with the Bankruptcy Code. EOUST approval does not endorse or assure the quality of an Agency’s service.
**The EOUST has reviewed only the Agency’s counseling/instructional services and no other services the Agency may provide [28 C.F.R. section 58.20(l)(11)]. Click here to view the states Credit.org is approved to issue certificates in compliance with the Bankruptcy Code.