Credit Counseling and Debtor Education Requirements Are Changing For Parts of Louisiana and Mississippi.

In a previous article “Hurricane’s Katrina and Rita and BAPCPA” I discussed how the requirements for pre-bankruptcy credit counseling and pre-discharge debtor personal financial management education had been waived for the entire State of Louisiana and the Southern District of Mississippi (the Gulf Coast).

This waiver was based upon a finding by the U. S. Trustee’s office that adequate counseling services were not available in these areas due to Hurricane’s Katrina and Rita that hit the Gulf Coast area in August and September of 2005.

This waiver will be ending as of March 10, 2008 for the Middle and Western Districts of Louisiana and the Southern District of Mississippi.

The waiver will continue in the Eastern District of Louisiana through September 30, 2008 unless the Trustee’s office decides to revisit the issue again before that date.

What this means is that as of March 10, 2008 people seeking bankruptcy relief in in the Middle and Western Districts of Louisiana and the Southern District of Mississippi will have to undergo credit counseling with an approved budget and credit counseling agency before filing for bankruptcy, and will have to undergo personal financial management before they receive a discharge in bankruptcy.

If you are considering bankruptcy and live in one of the districts where these changes will take effect, you might want to consider speaking with a bankruptcy attorney. The counseling and financial management courses are an additional expense that you may be able to avoid by filing before the changes occur.