Counseling Guidelines

NOTE: THERE ARE NO CHANGES TO THE CURRENT ON DEMAND (OD) PROCESS AT THIS TIME.

Overview

The budget provided by the client has been validated multiple times and in most cases, there is no need to push back for additional or clarifying information before making your decision.

 

Tips for common scenarios:

Odd Entries

  • Creditor name shows a dollar amount that is higher than the balance listed for the debt.
    • Change the balance to the amount listed in creditor field and change the creditor name to same as debt type (example: Tax Lien or Medical Debt)
  • Payment amount is higher than the debt balance.
    • Swap the amounts so that balance is higher than the payment.
  • Duplicate entries for debts.
    • If entries are the exact same creditor, balance, and payment amount the duplicate can be removed without clarification.
    • If entries are NOT the same, leave as is and proceed with counseling.
  • Debts mentioned in the “speech bubble” notes, but not reflected in the budget.
    • You will update the budget as needed or push back for clarification.
  • No income and no expenses listed but the client listed debts.
    • If the client explains that someone else (spouse, friend, or other family member, etc.) is paying for their expenses (this can be stated by the client on the call or if Web or WC client, in their notes or using the comment bubble) there is no need to push back and you may proceed with counseling.
      • For OD clients there is no need to gather any expenses or income in this scenario.
    • If on Web or WC, the client’s notes do not explain how those are being paid (they enter an unrelated note or comment in the bubble) then the counselor will need push back (either on the call or if WC, follow the process in the Counselor Aid for WC Handling) to understand how their expenses are being paid for — no amounts need to be gathered or entered, we just need to hear on the recording/read in the interaction that someone else is covering those.

Auto Loans

  • If there are loans with balances and payments, the system will change the highest balance loan to primary (as designed).
  • No need to ask if the client plans to keep the car or for the payment amount; proceed with counseling.
  • If ALL auto loans are listed with NO payment amount, they will each need to be manually moved to the “other unsecured debt” section.

Rent and Mortgage both entered.

  • If the amount for rent is the same as the amount listed for the mortgage payment and the mortgage balance is listed, the rent can be removed from the budget with no clarification.
  • If the amount is not the same for rent and mortgage payment, leave as is and proceed with the counseling

Reminder About Foreclosures

  • We don’t make the foreclosure presumption unless the client checked the foreclosure box AND has arrears listed.
  • If they have arrears listed but didn’t check the foreclosure box we don’t factor foreclosure into our decision.

Spouses/Significant Other

  • Spouse/Significant Other mentioned in notes on single account but income not listed.
    • No need to ask about additional contributions; proceed with counseling
  • Spouse/Significant Other’s income listed on single account.
    • No need to ask about additional contributions; proceed with counseling.

Food Spending

  • Average Spending for Food is $500 Per Person.
    • Now that other areas are being factored into the food percentage (pet food, alcohol, tobacco,& marijuana) it needed to be increased per person.

 Buffer Guidelines for Repayment

  • We previously asked you all to ensure the client has around a $200 buffer on top of the amount needed to pay their debt back in 60 months when recommending repayment, regardless of the household size.
  • For clarity, the new amount a client will need on top of the amount needed to pay off their debt is roughly $200 for 1 person and $50 for every additional person in the household.
    • Example: The client (household of 4) needs $833 to pay their debt off in 5 years, plus an additional $350 as a buffer.
    • That buffer can come from cutting back in areas of overspending and/or liquid assets if that is available.
  • If the client doesn’t have the appropriate buffer on top of the payback amount, you would not recommend repayment.

 

Additional WC Specific Guidelines

Missing payment amounts for non-dischargeable debts.

  • No longer need to send the scripted message in B1.

Issues Identified

  • If a budget has one or more errors that are not addressed with our new counseling guidelines see Counselor Aid document

Q&A

  1. Do we still need to recommend savings (Try to make savings a priority going forward. While saving 10 percent of your income is what’s recommended, don’t be afraid to start small and build on that over time)?
  1. No, since savings is recommended during the counseling session there is no need to mention this again during the one-on-one counseling.

 

  1. Can I still place my client on hold to review their budget?
  1. Yes, you still need to analyze each budget and make the best recommendation based on the information the client has provided and verified. If you need to place the client on hold to review the budget in order to make your recommendation, please do so.

 

  1. Do we still mention the district we are issuing the cert for?
  1. Yes, verifying the name, judicial district, and certificate issuing process has not changed.

 

  1. Do we still need to tell clients that they can access their certificate after their attorney views it for locked certs?
  1. Yes, the way you issue certificates and explain delivery is not changing.