Credit score counseling turned a part of the chapter course of in america with the passage of the Chapter Abuse Prevention and Shopper Safety Act of 2005. On account of this laws, your Chapter 7 or Chapter 13 chapter case shall be dismissed should you can’t show that you simply accomplished a credit score counseling session, with an permitted credit score counselor, throughout the previous 180 days.
In different phrases, in america, your chapter won’t begin till you may show that you’ve accomplished credit score counseling.
That is in direct distinction to the personal chapter system in Canada, the place credit score counselling (sure, in Canada we spell it with two l’s) is an integral a part of the chapter course of, however it’s accomplished throughout the chapter, not earlier than you file.
It seems that the American chapter reform in 2005 was championed largely by massive bank card firms and different lenders, they usually argued in favor of the credit score counseling requirement primarily, it might seem, as a solution to speak folks out of submitting chapter. The necessary pre-bankruptcy credit score counseling session, amongst different issues, discusses options to chapter. Since credit score counselors don’t additionally function chapter attorneys, it’s logical to imagine that they may, on the very least, be sure that all debtors are totally conscious of their non-bankruptcy choices 파이널에셋.
In Canada, the method is considerably completely different. First, all bankruptcies are dealt with by non-public people, usually with an accounting background, who’re licensed by the federal authorities. In Canada, practising lawyers will not be permitted to behave as trustees in chapter. The trustee handles all points of the file, together with gathering property from the debtor, and distributing the proceeds to collectors.
In Canada, previous to submitting a client proposal (much like a Chapter 13 submitting in america) or a personal chapter (much like Chapter 7), the debtor is required to satisfy with a licensed trustee in chapter, and the trustee is required to clarify to the debtor all of their choices, together with such non-legislative choices as debt consolidation and debt management plans by way of a credit score counselor. The debtor then decides whether or not or not they may file chapter.
In the course of the chapter (or proposal) the debtor is required to attend two credit score counselling classes.
The primary credit score counselling session discusses mon