Bankruptcy Act in 2012
What is the bankruptcy act and What it Means to You.
Before the Bankruptcy act of 2005 went into effect on October 17, 2005 thousands of consumers and businesses rushed to file chapter 7, Chapter 11, or Chapter 13. However the real impact to most consumers took place on January 1, 2006 when a condition of the bankruptcy act potentially doubled every credit card holder's monthly minimum payment. In the past creditors charged about 1% of your debt as the monthly minimum payment, this resulted in the consumer paying only interest on the debt; never paying down any of the principal! This means you would be in debt continuously. Now as of 1/1/2006 credit card companies are required to charge 2% of your debt as the monthly minimum payment, which means many have found that their monthly credit card payment has nearly doubled. For some the payment may not double exactly, some creditors already charged more than the 1%; to our knowledge the highest minimum was about 1.3%.
This increase in credit card payments combined with an increase in Mortgage interest rates on Adjustable rate mortgages (ARMs) has put millions of Americans at risk of having to file for bankruptcy.
Finding A Debtor Education Course
Debtor Education is a requirement of filing for bankruptcy. Bankruptcy filers must complete a pre-filing bankruptcy education course, and then prior to their bankruptcy being completed, they must complete a debtor education course. The companies that offer these courses are private, often credit counseling or legal firms and they are regulated by the DOJ. You will be issued an official bankruptcy certificate of completion once you have taken these courses.
Find the best and easiest to use bankruptcy education course at Debtor Education Courses. Use this course search engine to find courses based on your state, language, price and even how others have rated their experience. Its free and you do not have to provide any information to use the site!