Single most important hurdle to cross before filing bankruptcy.

Without a doubt in my mind I would have to say that the single most important hurdle to jump before filing bankruptcy is to take credit counseling from an approved credit counseling agency. Without the credit counseling certificate you cannot enter the bankruptcy court for protection. You might say that little certificate holds the keys to the bankruptcy kingdom.

I cannot stress enough that it is critical that you receive this certificate or you will probably be denied protection from the court. The only you may be exempted from taking the course is if you qualify under the following circumstances.

(3)

(A) Subject to subparagraph (B), the requirements of paragraph (1) shall not apply with respect to a debtor who submits to the court a certification that--

(i) describes exigent circumstances that merit a waiver of the requirements of paragraph (1);

(ii) states that the debtor requested credit counseling services from an approved nonprofit budget and credit counseling agency, but was unable to obtain the services referred to in paragraph (1) during the 5-day period beginning on the date on which the debtor made that request; and

(iii) is satisfactory to the court.

(B) With respect to a debtor, an exemption under subparagraph (A) shall cease to apply to that debtor on the date on which the debtor meets the requirements of paragraph (1), but in no case may the exemption apply to that debtor after the date that is 30 days after the debtor files a petition, except that the court, for cause, may order an additional 15 days.

(4) The requirements of paragraph (1) shall not apply with respect to a debtor whom the court determines, after notice and hearing, is unable to complete those requirements because of incapacity, disability, or active military duty in a military combat zone. For the purposes of this paragraph, incapacity means that the debtor is impaired by reason of mental illness or mental deficiency so that he is incapable of realizing and making rational decisions with respect to his financial responsibilities; and "disability" means that the debtor is so physically impaired as to be unable, after reasonable effort, to participate in an in person, telephone, or Internet briefing required under paragraph (1).

The chance of the credit counseling being waived is slim to none. If you even have a slight thought that you maybe filing for bankruptcy then take the credit counseling course so that you have at least a shot of filing bankruptcy. THE CERTIFICATE IS ONLY GOOD FOR 180 DAYS.

Although you can pick anyone I highly recommend Hummingbird Credit Counseling. You can take the course online and call in the verification process. You can take and receive your certificate within the same day in most cases.

The last thought I have about this is take the credit counseling course at least 24 hours before filing. Some courts have held that you must take the course at least 24 hours before filing bankruptcy. Be prepared, be prepared, be prepared and take the credit counseling earlier enough to cross that first hurdle.

Can the trustee take rover from me?

It depends. Most family animals are not worth any liquidation value so the trustee has no interest in Rover. However, let’s say that Rover is an AKC blue blood hound that is not only the family pet but is also utilized for breeding purposes and the off spring go for $100 per paw or $400 per pup. Then the trustee might say there is gold in that there pet and want to investigate taking Rover and selling him to a breeder.

Should you panic? NO! 9 times out of 10 the trustee does not want to mess with pets. I have handled everything from St. Bernards to Boa Constrictors and just about every species in between. Tell your attorney about your pet and its alleged worth. Is the animal AKC registered and fixed? If so there is no value to the pet because you cannot show or breed them. Is the animal rare or illegal? Provide details about the animal and what its purpose is in life. Keep in mind just because animal is rare it still may not be worth anything. eBay and the Internet are a great resource for determining values of just about anything.

My philosophy is always to disclose and exempt rather than to pray, sweat and possibly lose the love of Rover.