BAPCPA was passed on October 17, 2005. The law changes were vast-Hundreds of pages. One of BAPCPA's requirements is that Debtors in Bankruptcy undergo credit counseling.

There are two classes that are required. There are many credit counseling agencies that are approved by the Eastern District of Missouri Bankruptcy Court and we would be happy to provide you with a list of them. We use one credit counseling company that does both classes over the internet so that the debtor will be able to do the class on their own time at any time of the day or night. Most clients are concerned about where they will have to go to do the class and how long it will take. Through the convenience of the internet, the debtor may log on from any computer. If our client does not have a computer, the client may schedule a time to come to our office to use one of ours. If the client does not know how to use a computer, there are other alternatives available too. Some credit counseling companies will arrange for the client to do the courses over the phone or in person.

1. The first class is mostly a summarization of income and expenses, debts and liabilities and to see what kind of shape the debtor is in. Perhaps Congress didn't really know that we debtor's attorneys were already delving deep into those facts and that the first counseling class is duplicative of what we have already done. In that regard the first class does frustrate some debtor who realizes they are going through all their facts twice, once for the debtor's counsel, and once for the credit counselors. We advise clients to just grin and bear it and just get it done.

2. The second class is informative and educational. The class will teach the debtor about the basics of budgeting, the relationship between FICO scores and interest rates, and will teach the debtor about the consumer laws that were passed to protect the consumers from various bad behavior. The second class, which is called the Financial Management Course takes two hours to complete, and there is a short quiz after the class. 

This advice is given as of the date of publication, is intended for debtors filing in the Eastern District of Missouri (in the following counties: Crawford, Dent, Franklin, Gasconade, Iron, Jefferson, Lincoln, Maries, Phelps, St. Charles, St. Francois, St. Louis City, St. Louis County, Ste. Genevieve, Warren and Washington Counties) and is subject to change by your friendly neighborhood Congressmen or Congresswomen at any time.