bankruptcy?
If i am planning on filing bankruptcy, in about 2 months, would it be ok to stop paying the credit counseling people? We didnt start credit counseling to file banruptcy, but now it is the best thing for us…..
Tagged as: Credit Counseling · filing bankruptcy
Yes stop paying them, stop paying all unsecured debt
Just to add to this, you do have to do credit counseling prior to filing bankruptcy (see http://www.usdoj.gov/ust for a list of approved providers), but this does not involve paying an agency, it just involves ONE session on the phone or internet (sometimes in person if there’s one that is local). The only payment you’d be making is about $50 for that session. Stopping payment on your payments that you are currently making has zero impact on that.
Save your cash, don’t pay them.
No need to keep paying, save your $$ for Attorney/Filing fees.
Good luck.
Be advised there are new procedures you must follow BEFORE you can file for bankruptcy.
Bankruptcy Abuse Prevention and Consumer Protection Act of 2005
With limited exceptions, people who plan to file for bankruptcy protection must get credit counseling from a government-approved organization within 180 days before they file. They also must complete a debtor education course to have their debts discharged.
In general, you must file a certificate of credit counseling completion when you file for bankruptcy, and evidence of completion of debtor education after you file for bankruptcy – but before your debts are discharged. Only credit counseling organizations and debtor education course providers that have been approved by the U.S. Trustee Program may issue these certificates. To protect against fraud, the certificates are produced through a central automated system and are numbered.
If you cancel the credit counseling, this may affect your ability to file unless you are going through an agencie not recognized by the government.