Bankruptcy Credit Counseling Must Be Fully Complete Prior To Filing Bankruptcy
The U.S. Court of Appeals for the 6th Circuit Court recently decided the case of In re: William Warren Ingram, debtor, 2011 FED App. 0017P (6th Cir.) that began as a Chapter 13 Bankruptcy case in the United States Bankruptcy Court for the Northern District of Ohio. In that case, the debtor filed his Chapter 13 case and certified that he completed his credit counseling, only he hadn’t fully completed both portions. He had signed up for a credit counseling service that was a 2 part service, the first being an internet portion followed by a telephone interview. In fact, the debtor completed the first part, which was the internet portion, then he filed Bankruptcy on November 17, 2010. The next day, he completed the telephone portion, which was what was on the certificate that he filed with the Court.
The Bankruptcy Court dismissed his case as he did not complete the credit counsel prior to the Bankruptcy, which is what was required. The Court of Appeals held that the Bankruptcy Court did not abuse its discretion by dismissing the bankruptcy case, even if that means that creditors could continue to foreclose on his house. Contact Swartz Law if you want to avoid pitfalls.
Unfortunately for Mr. Ingram, he fell victim to one of the many pitfalls in Bankruptcy. If you want to avoid the pitfalls in Bankruptcy, contact Swartz Law today!
For the full text of the case, please see: http://www.ca6.uscourts.gov/opinions.pdf/11b0017p-06.pdf