Bankruptcy FAQ
Frequently Asked Questions
1. What is BAPCPA?
It’s the Bankruptcy Abuse and Prevention and Consumer Protection Act of 2005 (BAPCPA) that requires those who file for bankruptcy to obtain Pre-Filing Counseling (also called Pre-Bankruptcy Counseling) and Pre-Discharge Debtor Education from a BAPCA-approved nonprofit credit counseling agency.
ClearPoint Credit Counseling Solutions is approved to issue certificates [evidencing completion of a personal finance management course] in compliance with the Bankruptcy Code.*
2. What is a Webinar?
A Webinar is live seminar given over the Internet and by phone simultaneously.
3. If filing together, do both applicants have to be on the phone for a Webinar or phone counseling session?
Each applicant must attend a counseling session and an education course, either together or separately. If taking a Webinar or phone course together, both must be on the phone.
4. What’s the difference in filing bankruptcy and joining a Debt Management Program?
A debt management program is a voluntary debt repayment plan established and administered by a nonprofit credit counseling agency such as ClearPoint. Bankruptcy is a legal proceeding within the court system which allows you to assert your legal right to negotiate with your creditors to have your debt liquidated or restructured for repayment.
5. How long will the negative notation of a bankruptcy remain on my credit report?
10 years. See how bankruptcy will impact your credit.
13. How do I start with a bankruptcy filing?
Learn more about our Pre-Filing Counseling. Then contact an attorney (upon request, we can provide you with a list of legitimate bankruptcy attorneys).
14. What is a “Means Test”?
The Means Test is given by the bankruptcy attorney to see if his client qualifies for a Chapter 7 filing, or has the “means” (or ability) to repay a portion of the debt owed through a Chapter 13 filing.
15. If I can’t afford an attorney, what can I do?
We strongly suggest consumers hire a qualified bankruptcy attorney.
Other routes may include free or low-cost legal help through legal clinics, the Legal Aid Foundation, or pro-bono work provided by members of your local bar association.
If you have a nearby university offering a law degree, call the department and ask if they offer assistance to low-income area residents. For example, students attending the McGeorge School of Law at the University of the Pacific in Sacramento, CA offers low-income clients with legal representation in Chapter 7 proceedings each fall and spring semester.
Try searching the Internet–your area, and “voluntary legal services,” “free legal representation,” and “free legal assistance.” Also check with your city’s social services department.
16. Once I get my Debtor Education Certificate, what do I do with it?
Provide it to your attorney for submission to the court to complete your bankruptcy proceeding. If you are not using an attorney, you’ll need to determine which form is appropriate for your case.
*Approval does not endorse or assure the quality of a provider’s services.
