As part of the bankruptcy overhaul in 2005, Texas now requires both a credit counseling certificate as well as a debtor education course as part of any bankruptcy filing. Learn more about Texas bankrupcty counseling requirements in this presentation.

1. PRE AND POST TEXAS BANKRUPTCY COUNSELING REQUIREMENTS
ERIN B. SHANK
CENTRAL TEXAS BANKRUPTCY ATTORNEY
As Part of the Bankruptcy Overhaul in 2005, Texas Now Requires Both A Credit Counseling Certificate as Well as a Debtor Education Course as Part of Any Bankruptcy Filing

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Whether it was the lax underwriting efforts, the riskier loan products that were offered or the certainty that the debt could be managed, many consumers learned they were facing a difficult problem where the only solution was bankruptcy protection. As part of the bankruptcy overhaul in 2005, federal law now requires both a credit counseling certificate as well as a debtor education course as part of any individual bankruptcy filing. Because of the explosion in subprime lending that helped damage the national economy in the late 1990s and up until 2008 when the recession began, the number of bankruptcies increased rapidly in those years. Along with record levels of both credit card debt and student loan debt, Congress sought to ensure consumers were better armed with financial tools as they moved forward after a bankruptcy. Whether it was the lax underwriting efforts, the riskier loan products that were offered or the certainty that the debt could be managed, many consumers learned they were facing a difficult problem where the only solution was bankruptcy protection.
Note: most student loan debt isn’t dischargeable in a bankruptcy. Ms Shank will explore those details with her clients, but you can learn more by visiting the Student Loan Debt Collection Assistant that’s part of the CFPB family and available for anyone who has overwhelming student loan debt.

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MANDATORY COURSES Many Texas consumers feel they’re not necessary or they’re concerned about the costs. These requirements are neither time consuming or do they require the consumer to attend any seminars or meetings. This paper will discuss these two mandatory bankruptcy compliance rules. The cost for both of these courses – the credit counseling and debtor education course - is included in the fees you pay to Erin B. Shank. Neither require any upfront payments.
ABASCUS CREDIT COUNSELING
Abascus Credit Counseling was created by financial planning experts for the sole purpose of providing counseling for those considering bankruptcy protection. It’s a non profit organization that works with our firm to help ensure our clients are in compliance with the new bankruptcy rules. Specifically, this course meets the bankruptcy pre-filing requirement. Abascus is an approved agency that will issue the necessary certificates immediately upon completing the course. It is a simple online course you take over the internet in the privacy of your home.

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If the bankruptcy filing includes two spouses, both are required to complete the course, though only one fee is charged. The course is completed online and does not require an appearance to complete a test or certification process. The course itself takes between 60 and 90 minutes. Further, the course can be paused and returned to later for the consumer’s convenience. The certificate is provided via a link and a copy of proof of completion is also forwarded to your bankruptcy lawyer. It remains valid for six months and provided the bankruptcy is filed during this timeframe, there are no further refresher course. Abascus also offers a digital library of information that’s beneficial for those wishing to rebuild their credit. Topics include Housing, Health, Utilities, Shopping, Banking, Credit Cards and more.

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The website is easy to navigate and the course itself is easy to navigate from page to page.
DAVE RAMSEY DEBTOR EDUCATION As part of the second half of the requirement, consumers will be provided a DVD or a link that allows them to view online one of the nation’s most recognized financial advisors who presents the course in a relaxed and casual manner. It too is easy to follow and is actually quite entertaining.
For those familiar with Ramsey, you likely are aware of his own bankruptcy experience. Because he too filed for bankruptcy in his mid-20s, he has an insight that others may not possess. He understands the impact of bankruptcy and more importantly, he understands the challenges and rewards that come from rebuilding your credit history.
His website also has a lot of valuable information for consumers, along with a lesson breakdown, testimonies and information should you decide to attend any of his live events held around the country every year.

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It’s been our experience that both of these courses have benefited our clients in ways they hadn’t anticipated. They learned financial habits that they were able to put to use as they go about rebuilding their lives and their credit. Every staff member who works with Ms. Shank is knowledgeable on the various bankruptcy laws, both on the state and federal levels. Each stands ready to provide any assistance needed as clients move through the courses. Bankruptcy is never the preferred solution, but it’s also not the overwhelming, credit-ending nightmare it’s sometimes portrayed as. The purpose of bankruptcy is to provide a clean slate for those who simply hit a snag in their finances. It could be due to a job loss or illness or even a divorce. It’s not the end of the world; but it can be the beginning of a much easier, peaceful and worry-free life that allows for a much happier life moving forward. If you have any questions at any point during the counseling or throughout the collective bankruptcy process, please contact our office. Our goal is to ensure you’re confident and comfortable with the process from start to finish.

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About the Author Erin B. Shank With extensive training and years of experience helping families throughout Central Texas, Erin B. Shank is here to help you conquer your financial obstacles. Whether you need guidance and advice regarding bankruptcy, debt, tax debt or other financial problems, Erin and her friendly and qualified team can help you find solutions that will enable you to manage or eliminate your debt.
Erin B. Shank, P.C.
www.centraltexasbankruptcy.com 1902 Austin Avenue Waco, TX 76701 (254) 296-1161 1711 East Central Texas Expressway Suite 107 Killeen, TX 76541 (254) 690-4110