The BAPCPA or the Bankruptcy Abuse Prevention and Consumer Protection Act that came into effect in 2005 have made certain changes as far as filing bankruptcy is concerned. Some of the prominent ones include inclusion of Means test to check eligibility for Chapter 7 bankruptcy, pre-bankruptcy credit counseling sessions etc. In other words, filing bankruptcy has been made rigid. More on pre-bankruptcy credit counseling As per the new bankruptcy laws, you have to take pre-bankruptcy briefings prior to filing bankruptcy. This has been introduced to prevent debtors from filing bankruptcy who can solve their debt problems by opting for the bankruptcy alternatives. It is mandatory to take pre-bankruptcy briefing from a credit counselor who is approved by the US Dept. of Justices’ Trustee Program. When you approach a credit counselor, your financial condition is first assessed. Your income, expenses, debt payments etc are taken into account. You will be given a repayment plan according to which you are expected to make payments. However, there are very few debtors who actually benefit from the pre-bankruptcy briefings. This is because when debtors attend these sessions; their debt load is such that they are not able to derive benefit from these briefings. They are left with bankruptcy as the only debt relief option that can help them to get out of debt. Nevertheless, there are many debtors who are greatly benefited from these credit counseling sessions and have successfully dodged bankruptcy. It depends on the debt load you are carrying at the time of attending these briefings. You have to produce a repayment plan and certificate (given by your credit counselor) that you have completed credit counseling successfully before you file bankruptcy. This certificate is valid for a period of 180 days. So, you need to file bankruptcy within 180 days from the time you attend these sessions. Credit counseling briefings can be carried out over the telephone, in a classroom, through mail etc which ever is agreed upon between you and your credit counselor. It usually lasts for about 60 minutes to an hour and a half and costs approximately USD$50 for one session. Remember filing bankruptcy harms your credit score and makes it drop by several points. Moreover, if you have bankruptcy in your credit report, it prevents you from enjoying several financial benefits. So, it is best to manage your finances in such a manner so that you don’t reach a point where you are left with bankruptcy as the only debt solution that can bail you out of a debt trap.