9-9-2006
KCCHA first local organization
to offer federal credit counseling
The Kitsap County Consolidated Housing Authority (KCCHA) has been named by the US Trustee Program the only certified bankruptcy credit counseling program based in Western Washington. This certification adds to a list that includes: pre-home purchase, homeownership, and reverse mortgage counseling. New federal legislation that went into effect last year requires people to go through an approved credit counseling program six months prior to filing bankruptcy.

Congress passed a law last year to make filing for Chapter 7 (discharge of most debts) much harder because citizens were taking advantage of the lax restrictions and filed for bankruptcy in order to avoid payment. The new law encourages debtors to file under Chapter 13 (reorganization of finances and setting up a payment plan) instead.

In 2005 35,353 individuals filed for bankruptcy in Western Washington. Of those, 30,183 filed under Chapter 7, and 5,063 under Chapter 13.

Other services KCCHA’s housing counselors provide, which include:

  • Homeownership counseling: Home purchase counseling before and after sale, foreclosure prevention assistance, financial education classes and information regarding home maintenance.
  • Financial Skills Workshops: Classes that teach how to successfully budget household finances and deal with unforeseen situations that might arise.
  • Reverse Mortgage Counseling: This HUD certified program is a requirement for reverse mortgage applications.
  • Predatory Lending Workshop: Free workshop on how to protect yourself from predatory lenders by becoming aware of your rights and how to spot shady loan offers.
  • Family Self Sufficiency Program: A program that allows families in Section 8 or Public Housing programs get better jobs and start stabilizing their financial situation. Participants earn money that goes into an escrow account that they can use for purposes such as attending college or for a home down payment.
  • First time buyer classes: With the Kitsap Housing Coalition, classes are offered that demystify all of the terms and procedures that are involved when purchasing a home.