In 2002 it was reported that more people filed bankruptcy than graduated from all universities in the United States.

Something’s gotta give.

Recession.  Slow Down.  All the politicians talk about is what scares the most people.  All of the rhetoric, bickering, back biting, and posturing by all of the politicians in the U.S. does nothing for an individual locked in a struggle to survive and provide for their loved ones.

Some people have to just let the world keep spinning on its axis while they choose between food and medicine, clothing or heat, a roof over their head or pay their taxes, etc.

At the point when all hope has been drained from their body is when most choose bankruptcy.

But there is an alternative.

Please join the chorus and spread the word about alternatives to bankruptcy.  And the alternative to hopelessness.

You may think that what I mean by the alternative to hopelessness is Hope…with all due deference to our hope spouting presidential candidates the opposite to hopelessness is not Hope.  The opposite to hopelessness is…a plan.

Hope is not a plan.

There is an organization, approved by the United States Bankruptcy Trustee, that can quiet the winds of financial torment, stop the phone calls from collectors, and show the debtor the light at the end of tunnel.

They can negotiate interest rates, to waive late fees and over limit fees, reduce payments, and other magical things to bring relief to the debtor.

 As of this publication, there is no fee charged to the debtor.  They ask for a donation into their program upon graduation. 

 They are the largest recipient of HUD grant money for this type of service in the country.  They also get some funding from credit card companies.  And why not?  The credit card companies helped to put a lot of people in too much debt.  They ought to help support a program that helps get people out of debt…in my opinion.

They can set up an affordable payment plan, almost the same as a Chapter 13 Bankruptcy, without the stigma of being in bankruptcy.

Well, almost.

The organization of which I speak is Consumer Credit Counseling Services (CCCS).  As with most myths, some professionals view a debtor being in credit counseling in the same light as bankruptcy.

Shame on them.
There are other myths about CCCS.  For example, it is widely believed that CCCS is for poor people.

The average client earns $87,000.

It is thought that CCCS is for dumb people.

CCCS has a large client base of highly trained and highly paid professional who utilize their services.

And if you are enrolled in CCCS and it shows up on your credit report you can never get another loan until it is gone.

Not exactly true.

If you came into CCCS drowning in debt, what the heck are you doing trying to get a new credit card in the first place?

But when it comes to your home, the FHA will allow a debtor in specific consumer credit counseling services to purchase or refinance a home once they have made an on-time payment to their debt reduction plan for 12 consecutive months.

Say that again? 

The FHA will allow a debtor in specific consumer credit counseling services to purchase or refinance a home once they have made an on-time payment to their debt reduction plan for 12 consecutive months.

FHA views a choice for CCCS as responsible.  A choice for bankruptcy is not so much responsible.  Bankruptcy is, sometimes, the only choice for an individual.  Then, bankruptcy becomes the thing it was intended to be: a protection of the debtor’s ability to live and make a living. 

Even bankruptcy is misunderstood.  If you file for bankruptcy, you are allowed to affirm (keep) certain items.  Your home, for example.  Your car.  And you can even affirm certain debt accounts with which you have had no trouble.

Bankruptcy, in certain lending worlds, has a limited impact as well.  Once a bankruptcy has seasoned for two years, FHA will give a debtor a new mortgage and a second chance.

Bankruptcy has been abused in the past by people who don’t need the protection of their ability to make a living.  That is one of the pressing reasons why congress changed the laws the way they did a few years ago.

In fact, prior to filing for bankruptcy, a debtor must attend a class with none other than CCCS.

But there is a tripping point.  If you start with an attorney and are then referred to CCCS, the company doesn’t enroll you into debt management.  You must engage with CCCS first.

So, dear reader, you may not be on the brink of bankruptcy.  However, someone you care about may be kicking stones over the abyss.

Talk about it at your next party, at the office, or at the coffee shop.  Most people considering bankruptcy are not likely to broadcast that information.

Eliminate the debt of human kindness by acting randomly with speeches about CCCS and the myths about bankruptcy.