Pre-Filing Bankruptcy Briefing

Pre-filing bankruptcy briefing. The pre-filing bankruptcy briefing provides financial help counseling on topics such as budgeting, expenses, and debt to income ratios. The law suggests that the pre-filing...

The law suggests that the pre-filing briefing last an average of 90 minutes. The briefing can take place one-on-one or in a group session, and in person, by phone, or online. It's going to be convenient for the consumer. A cost has not been assigned in the law. Each provider would come out with their own cost that is appropriate to them. The law states that it needs to be a reasonable fee and also that we provide the service regardless of ability to pay. The counseling will address such things as why they are there and what financial problems led them to the situation. We will give them an overview of bankruptcy, the consequences of bankruptcy, touch on alternatives to bankruptcy, and go through a thorough budget analysis. We also give them an overview of the differences between chapters 7 and 13. We will teach him how to work a budget, look at his assets and liabilities, his monthly income, fixed expenses versus periodic or variable expenses, and then we will help him put it all together into a plan and make recommendations as to changes we see necessary. We will help him understand how to live within the budget, look at his debt to income ratio, and address underlying factors and modifying his lifestyle. We will make suggestions about increasing income when appropriate and reducing expenditures. Everything I just outlined in the pre-filing counseling has to take place within 180 days of the consumer filing for bankruptcy.

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