CBS CBS Consumer Bankruptcy & Debtor Education

Question 1

Under BAPCPA 2005, what is the mandatory pre-bankruptcy credit counseling requirement for consumer debtors?

Accepted Answer

Debtors must complete credit counseling from a U.S. Trustee-approved agency within 180 days before filing

Answer

Debtors must complete 8 hours of financial literacy courses at least 30 days before filing

Answer

Debtors must attend a counseling session conducted by the bankruptcy court clerk

Answer

Debtors must complete counseling only if their income exceeds the state median

Question 2

When must the post-filing debtor education course in personal financial management be completed?

Accepted Answer

Before the debtor receives a discharge (prior to all plan payments in Chapter 13, or before the discharge order in Chapter 7)

Answer

Within 30 days of filing the bankruptcy petition

Answer

Within 60 days after the Section 341 meeting of creditors

Answer

After the discharge order is entered in both Chapter 7 and Chapter 13 cases

Question 3

Which federal agency is responsible for approving credit counseling and debtor education providers under BAPCPA?

Accepted Answer

The U.S. Trustee Program (USTP) within the Department of Justice

Answer

The Consumer Financial Protection Bureau (CFPB)

Answer

The Federal Trade Commission (FTC)

Answer

The National Foundation for Credit Counseling (NFCC)

Question 4

Under what circumstances may a debtor obtain a waiver of the pre-bankruptcy credit counseling requirement?

Accepted Answer

Exigent circumstances that prevented the debtor from obtaining counseling before an emergency filing was required

Answer

When the debtor previously received a bankruptcy discharge within the past 8 years

Answer

When the debtor's total unsecured debt is below $10,000

Answer

When the debtor is represented by a licensed bankruptcy attorney

Question 5

What must the mandatory pre-filing credit counseling session include?

Accepted Answer

An evaluation of the debtor's financial situation and a discussion of available alternatives to bankruptcy including debt management plans

Answer

A review of the debtor's credit report and FICO score analysis

Answer

A live negotiation session between the debtor and each major creditor

Answer

A legal analysis of which bankruptcy chapter the debtor should file under

Question 6

Which official form is filed with the bankruptcy court to certify completion of the pre-bankruptcy credit counseling requirement?

Accepted Answer

Official Form 423 (Certification About a Financial Management Course)

Answer

A notarized letter from the credit counseling agency

Answer

IRS Form 982 documenting the debtor's financial condition

Answer

Official Form 101 (Voluntary Petition for Individuals Filing for Bankruptcy)