Bankruptcy Counseling – Crush Your Debt!

An approved credit counseling agency is a nonprofit that is government-approved for bankruptcy counseling, also called bankruptcy debt counseling or pre filing credit counseling, by the Executive Office for United States Trustees and the US Trustees.

Yes. Alliance is approved in all states and all courts by the Executive Office for United States Trustees (EOUST) and the US Trustees to issue Pre-petition Bankruptcy Counseling Certificates and Pre-Discharge Financial Management Course Certificates in compliance with the bankruptcy code and standards established by the EOUST. Such approval does not endorse or assure the quality of an agency‘s service by the EOUST.

Before filing Bankrupcty, a debtor must complete Pre-Petition Credit Counseling, sometimes called bankruptcy debt counseling or pre filing credit counseling. The bankruptcy counseling must include an analysis of your current financial condition, a review of factors that led to this condition, information about alternatives to bankruptcy, and assistance developing a plan to respond to the financial condition without incurring more debt. The counseling session typically takes 60-90 minutes. A certification of completion is provided by an approved agency in the form of a certificate issued with a serial number provided by the appropriate authority. The counseling must be provided before you file for bankruptcy by a non-profit credit-counseling agency, approved by the U.S. Trustee’s Office.

Prior to obtaining Discharge, a debtor must be certified as having completed the Pre-Discharge Personal Financial Management Course. This is sometimes called bankruptcy exit counseling or debtor education course. The course must include written information and instruction on budget development, money management, wise use of credit, and consumer information. The course must be a minimum of two hours. A certification of completion is provided by a government approved credit counseling agency in the form of a certificate issued with a serial number provided by the appropriate authority. The course must be provided by an agency approved by the U.S. Trustee’s Office. For Chapter 7 cases, the certificate of completion must be filed prior to the 45th day after the creditors meeting (341 meeting) and for Chapter 13 cases, it must be filed no later than the date of the last payment made under the repayment plan or the date of the filing of a Motion for a Discharge prior to completion of the plan.

1. Monthly household income amounts. This includes income from any source.
2. Monthly household expense details such as gas, electric, phone, insurance, food, transportation, medical, etc.
3. Asset information such as value of real-estate, any vehicles, savings, 401k, IRA’s, etc.
4. Unsecured debt account balances and monthly payment, such as credit cards, personal loans, medical bills, etc.
5. Secured debt account balances and monthly payment, such as a mortgage or a vehicle.
No account numbers are required.

1. Bankruptcy case number.
2. District of bankruptcy filing, which is obtained from your attorney.

Yes, if you’re filing jointly. Your attorney can help you determine the appropriate filing status.

The bankruptcy counseling takes 60 to 90 minutes to finish.

The financial management course takes about 2 hours to complete.

After a counselor has certified your satisfactory completion of the bankruptcy counseling session or debtor education course, a certificate of completion will be sent to you. A copy of the certificate can also be sent to your attorney, by email, fax or mail, at your request. Certificates can be available the same day of completion when a counselor is able to verify fulfillment of online session completion, including data input requirements, ID validation, and may require a brief telephonic interview.

The certificate is valid for 6 months (180 days) from the date listed at the top of your certificate.

Course Delivery                 Filing Type                    Price
Online Certificates            Single or Joint Filers       $19
Telephone/In-Person        Single or Joint Filers       $49
Note: You may qualify for a fee waiver or reduction.

Debtor presumptively lacks the ability to pay the fee if the Debtor’s household current income is less than 150 percent of the poverty guidelines updated periodically in the Federal Register by the U.S. Department of Health and Human Services under the authority of 42 U.S.C. 9902(2), as adjusted from time to time, for a household or family of the size involved in the fee determination (https://aspe.hhs.gov/poverty-guidelines).

In other words, the client may qualify for a waiver of the session or course fee if the client’s income is below the poverty line (https://aspe.hhs.gov/poverty-guidelines), or a fee reduction of 50% if a client’s income is below 150% of the poverty line.
In order to issue a waiver or reduction, Alliance must receive supporting documentation of the client’s income.

Procedure:
Review the stipulations, document requirements, and Current Poverty Guidelines here.
Gather the required Documents.
Send the Documents: Include the client’s full name, email address, and phone number.
Email to bankruptcy@knowdebt.org
or Fax to 704-973-9462
The client will receive confirmation of receipt within 2 business days.

Stipulations:
If a client is married, but filing single, both spouse’s combined income is considered, if they are living in the same household. Criteria for possible waiver: If the client’s income is below the poverty line. Criteria for possible reduction: If client’s income is above the poverty line, but below 150% of the poverty line.
Documents: One or more of the following items will be needed. Documents submitted are subject to verification. All documents must be dated within the past 60 days, except tax documents.

If client or co-client is working:
Two most recent consecutive pay stubs, for each individual working in the household.
The first two pages of the most recent 1040-tax document, including signature page (legal documentation of guardianship for dependents may also be required).

If client or co-client is unemployed:
Unemployment documentation from the state employment commission.
The first two pages of the most recent 1040-tax document, including signature page (legal documentation of guardianship for dependents may also be required).

If receiving SSI, Disability, and/or Pension: (All pages of each document is required)
SS/Disability documentation from the local Social Security office, or appropriate pension documentation.
The first two pages of the most recent 1040-tax document, including signature page (legal documentation of guardianship for dependents may also be required).

If client is receiving any other assistance: (All pages of each document is required)
Documentation of any other government, or court-ordered assistance. Examples are: AFDC, Federal Food Assistance, child support, etc.

If self-employed:
A Profit and Loss statement from within the last three months.
The first two pages of the most recent 1040-tax document, including signature page, (legal documentation of guardianship for dependents may also be required).

Payment can be made by debit card, VISA, MasterCard, Money-Gramm, Cashiers Check, Money Order.

Monday through Friday 9:00 am-5:30 pm Eastern. Access to the online course system is available 24×7.

Yes. Our counselors are always happy to assist you with questions you might have in regard to budget, credit, debt, etc.

We always advise to consult an appropriate legal professional before starting down this path. Nevertheless, you can talk to a counselor at Alliance before or after you meet with an attorney.

Bankruptcy is a federal law, and a great summary is found on the US Department of Justice website and Wikipedia.

The length of time to complete the bankruptcy process will depend on what type of bankruptcy you file and on your particular situation. A Chapter 7 bankruptcy can typically be completed in three to six months. A Chapter 13 bankruptcy requires repayment plan, which are typically three to five years.

That is a great question for your attorney. While we don’t offer legal advice, you will find that, in general, there are two main types of consumer bankruptcy. The first is called “Chapter 7,” “liquidation,” or sometimes “straight bankruptcy.” Most of your assets are sold to pay your creditors. The assets you are allowed to keep will partly depend on the state where you live. The second type is called “Chapter 13,” “reorganization,” or “wage earner’s plan.” You can usually keep most of your assets in return for a court-approved repayment plan. The particular type of bankruptcyyou file will depend on your circumstances. A competent attorney can help you make the decision.

PRE-PETITION BUDGET BRIEFING & PRE-DISCHARGE DEBTOR EDUCATION DISCLOSURE STATEMENT
Alliance Credit Counseling, Inc. (Alliance) is a non-profit organization which provides professional personal finance education, confidential counseling, and debt reduction programs. Clients have the opportunity to negotiate an alternate payment schedule for unsecured consumer debts and Alliance can provide this service including impacts on consumer credit reports. Pre-Petition Budget Briefing is available by phone; Pre-Petition Budget Briefing and Pre-Discharge Debtor education are available through the Internet via the organizations website located at www.knowdebt.org. Services are available to anyone without regard to race, religion, national origin, gender, age, or ability to pay. All Debtor information is held in strict confidence by Alliance in compliance with the Gramm- Leach–Bliley Privacy Act, except as authorized for release by the Debtor, or as may be required from the United States Trustee.

FUNDING SOURCE
Alliance receives the majority of its funding from the following sources: Fees paid by Debtor for counseling services and education programs offered to the public. Grants from private foundations and corporations who support our counseling and educational services and programs, and from government agencies. Voluntary “fairshare” contributions from some creditors related to debt management plans administered by Alliance. Alliance does not receive referral fees for the referral of Debtor under a fair share agreement. Alliance does not pay or receive fees or other consideration for the referral of Debtors.

INSTRUCTOR/COUNSELOR QUALIFICATIONS
All instructors/counselors are Alliance employees and most work full-time for the organization. Instructor/counselor obtain financial counseling certification through an approved third-party institution prior to providing counseling. Instructor/counselor comply with all continuing education requirements necessary to maintain certification. Only certified instructor/counselor are allowed to provide the required counseling and education, and to issue the Certificate of Completion.

IMPACT ON CREDIT REPORT
Alliance does not disclose or provide, to a credit reporting agency, information concerning whether an individual Debtor has received or sought credit counseling or instruction concerning personal financial management from the organization. Entering a debt management plan could have a negative impact on your credit. Bankruptcy has a negative impact on a credit profile and is reported for 7 to 10 years, in most cases.

NO LEGAL OR TAX ADVICE
Although a counselor may answer general questions about bankruptcy, Alliance does not provide legal or tax advice. If legal or tax advice is needed, you should seek the appropriate assistance from a qualified attorney or tax professional.

LIMITED ENGLISH PROFICIENCY
Individuals who do not speak English as their primary language or who have difficulty understanding English, may request communication in another language at no charge. Alliance will provide communication in the requested language if it has a counselor or translator available, otherwise it will promptly provide a referral to another appropriate provider.
COST OF SERVICES

Alliance charges fees for some services to cover the cost of providing the service. These fees include any postage, shipping, handling, and materials. The fee is due and payable at the time of the service. We accept VISA or MasterCard, branded debit cards, Money-Gram, money orders, and cashier checks.

FEE SCHEDULE
Pre-Petition Budget Briefing: Pre-Discharge Debtor Education:
Individual or Joint Session Online $19 Individual of Joint Session Online $19
Individual or Joint Session Telephone $49

Debtor presumptively lacks the ability to pay the fee if the Debtor’s household current income is less than 150 percent of the poverty guidelines updated periodically in the Federal Register by the U.S. Department of Health and Human Services under the authority of 42 U.S.C. 9902(2), as adjusted from time to time, for a household or family of the size involved in the fee determination (https://aspe.hhs.gov/poverty-guidelines).

Alliance does not offer telephonic Pre-Discharge education. Alliance does not offer IN PERSON counseling or briefing or education for Pre-Petition or Pre-Discharge.

POWERS OF ATTORNEY
Powers of Attorney are not accepted by Alliance. Please contact your attorney or Bankruptcy Administrator in regards to the Voluntary Petition for Individuals Filing Bankruptcy – Official Form 101.

CERTIFICATE OF COMPLETION
Alliance is approved to issue a certificate evidencing completion of a credit counseling briefing and/or personal financial management course in compliance with the Bankruptcy Code. Approval does not endorse or assure the quality of a provider’s services. Alliance determines when a Debtor’s counseling/course has been completed, which includes a minimum duration of 60 minutes for the budget briefing session, and 120 minutes for the debtor education course. Alliance is obligated to promptly provide an appropriate certificate of completion to each individual no later than one business day after completing the budget briefing session, and no later than three business days after completing the debtor education course. Certificates are issued regardless of ability to pay.

ADDITIONAL INFORMATION
The organization might disclose Debtor information to the United States Trustee in connection with the United States Trustee’s oversight of the organization, or during the investigation of complaints, during on- site visits, or during quality of service reviews; The fact that the United States Trustee has reviewed the organizations credit counseling (pursuant to 11 U.S.C. 111(c)), and the personal financial management instructional course (pursuant to 11 U.S.C. 111(d)), and the fact that the United States Trustee has neither reviewed nor approved any other services the organization provides to debtors; and the fact that a Debtor will only receive certificate if debtor completes instruction [Section 6] [28 C.F.R. § 58.33(k)(9)]