One of the most asked questions is, "Which products or companies should I use for the new steps in filing bankruptcy?"  There are some things you need to understand about each step in the process before you decide which company or product to use.  These are discussed as they fit into each step in the bankruptcy process.

Credit Counseling Providers

The "ticket in" is simply a credit counseling and budget analysis session that the person wishing to file bankruptcy must attend.  You must attend this credit counseling session within six months prior to applying for bankruptcy.  Also, the credit counseling session must be done by a non-profit agency that has been approved by the United States Trustees office. 

Even though these are non-profit companies, most of the approved vendors make the bulk of their money by selling debt management or debt consolidation services.  Make sure you are aware of these services and the potential pitfalls before you go through the counseling.  However, a few of the companies offer the counseling services alone.  See the approved providers. 

Means Test Providers 

Under the new law, a "Means Test" is performed in order to determine if the bankruptcy filer is eligible for Chapter 7 bankruptcy and force them to choose a Chapter 13 (repayment plan) bankruptcy instead.  The Means Test is applied if your current monthly income is above the median income for your state.  Whether you have the ability to pay $100 per month ($6,000 over 5 years) is determined by applying a complicated formula that considers your income, household expenses, and debt. 

Several companies are offering this means test for bankruptcy attorneys in the hopes that the attorneys will recommend clients use their services. 

Debtor Education Providers

The "ticket out" for the new bankruptcy law is attending some type of financial education class.  You must attend the financial education class given by an approved provider before your bankruptcy can be finalized. The United States Trustees Office decides which education providers are officially approved for the Ticket Out Education.

As with the Ticket In Counseling, many of the companies offering this Financial Education Course also make most of their money by selling debt management or debt consolidation services (read pitfalls here).  Many providers treat the education piece of the law as they would traffic school.  They offer the minimum requirements in a format that has little likelihood of being applied by the student.  Their expertise (and profits) come from the debt management or debt consolidation services. 

Make sure you are aware of these services and the potential pitfalls before you go through the education course.  However, a few of the companies focus on having the best education materials because it's their focus, instead of debt consolidation or debt management.  See the approved providers