AICCCA Consumer Guide to New Bankruptcy Law Credit Counseling Requirement


Fairfax, VA - August 11, 2005 — The Federal Bankruptcy Reform bill will go into effect in October 2005. At that time, anyone wishing to file for personal bankruptcy protection will first be required to seek counseling from an Executive Office for United States Trustees (EOUST) approved credit counseling agency before becoming eligible to file. EOUST requirements are consistent with the standards and practices to which all AICCCA members must adhere.

"The new credit counseling requirement to file for bankruptcy may seem unusual to those unfamiliar with the process," said Dave Jones, president, Association of Independent Consumer Credit Counseling Agencies. "We want to assure all those that will seek personal bankruptcy protection, that AICCCA member agencies are well-qualified to help them fulfill the counseling requirement and gain the necessary knowledge about their financial situations to make informed decisions."

AICCCA Consumer Guide to New Bankruptcy Law Credit Counseling Requirement:

Choosing an approved credit counseling agency. The clerk of the court where the bankruptcy is to be filed will provide a list of Executive Office for United States Trustees approved credit counseling agencies. AICCCA members have applied with the EOUST and are ready to help consumers in need of counseling. You may choose to receive counseling in person, by telephone or by Internet.

What to expect from your counseling session. A credit counselor will review your financial situation and determine your total amount of debt, your ability to repay and explain the options available to you. You can expect your counselor to spend the time necessary to explore all of your options with you during your counseling session.

Steps to take after your counseling session is complete. All your options for action will be explained to you and along with that information you will receive a certificate of completion from the agency. The counseling completion certificate is what you will need to give to the court if you decide to file bankruptcy.

Founded in 1993, Association of Independent Consumer Credit Counseling Agencies (AICCCA) is a national membership organization, established to promote quality and consistent delivery of credit counseling services. AICCCA and its members are focused on improved creditor relations, efficient processes and advanced technology to best serve clients and creditors. AICCCA members are independent nonprofit agencies that advocate for debtors, counsel millions of consumers annually nationwide and provide debt management services to consumers with excessive unsecured debt. For more information or to contact an AICCCA member office call (800) 450-1794 or visit www.aiccca.org.