Page 51 - Book8E

8 . Attorney Inquiry
Attorneys hired by debtors must make their own inquiry to verify that the information provided by the debtor is correct. The attorney’s signa- ture on the petition indicates this inquiry has been made.
9 . Student Loans
Student loans cannot be discharged or written off. This now includes loans given by for-profit and nongovernmental lenders.
The United States Trustee Program, under the Department of Justice, was created to help protect the integrity of America’s bankruptcy sys- tem. The 2005 changes to the bankruptcy law assigned the Trustee Program with new responsibilities, which include:
• Applying a new income standard for deciding whether an indi- vidual qualifies for a Chapter 7 or Chapter 13 bankruptcy
• Conducting audits to ascertain the accuracy of an individual’s Chapter 7 bankruptcy documents
• Certifying credit-counseling organizations to provide an indi- vidual with counseling before bankruptcy can be filed
• Certifying credit-counseling organizations to provide financial education to the individual before his or her debts can be dis- charged
As you can see, the bankruptcy law requires individuals to complete steps you have already taken—seek the help of a credit counselor, establish whether or not there is enough income to support a payment program, and accept financial education to prevent future bankruptcy filings.
A bankruptcy should always be considered as the last resort for solv- ing financial problems because the long-term results of a bankruptcy exceed any other solution. Your credit report will show a bankruptcy for ten years and make it very difficult to do many of the things you would like to do.
Things You Should Know About Bankruptcy 41