Credit Counseling Exemptions
In 2005, the federal government passed the Bankruptcy Abuse Prevention and Consumer Protection Act. This law created new qualification requirements for debtors seeking bankruptcy. In particular, it created a nationwide requirement for debtors to go through a credit counseling program prior to filing for bankruptcy. This credit counseling is mandatory for most debtors. However, there are a few circumstances which may allow for an individual to receive an exemption.
For more information regarding your rights and options as a debtor facing bankruptcy, contact the Boston bankruptcy attorneys of Joshua Spirn & Associates at 800-975-5346 today.
Types of Exemptions from Credit Counseling Requirements
Mandatory credit counseling programs are meant to help some debtors avoid bankruptcy altogether. By working through a counseling program, some individuals may be able to compromise with creditors on a reasonable payment plan. However, some individuals cannot go through these programs or may not benefit from them. As a result, the following people do not have to work through a credit counseling program:
- Active-duty, combat zone-deployed military personnel
- Individuals with physical disabilities
- Individual with mental disabilities
In these situations, a person either cannot attend the credit counseling sessions is presumed to be unlikely to benefit from them. Many times, for disabled individuals, the cost of therapy and various necessary treatments forces them into a deep state of debt. This debt can so far outweigh whatever welfare or compensation they receive that bankruptcy stands as the only viable option.
Contact Us
If you have considered bankruptcy as a means to escape an unmanageable debt, working through the process with an experienced advisor can help. To learn more about our services, contact the Boston bankruptcy lawyers of Joshua Spirn & Associates today by calling 800-975-5346.
