What should I expect from my bankruptcy credit counseling?

In 2005, the bankruptcy law was changed to make it a requirement that any individual planning to file for bankruptcy must attend a credit counseling session with an approved counseling company before filing.

The law states that the bankruptcy counseling session must take place 6 months prior to the bankruptcy filing; the session must be at least 90 minutes in length, and it will come with a fee, although, by law, the fee cannot be greater than $50 (as of February 2011).

The details of the counseling session are largely up to you. You are allowed to choose an online, one-on-one, group or phone session. You may also choose the counseling agency you like, although you must make sure the agency is approved by the US Trustee Program of the Department of Justice.

During the session, you should expect to go through your debt and credit record with the counselor. You will be provided a briefing in terms of the other possible options (aside from bankruptcy) that are open to you, as well as information on how to look into those options should they interest you. The session is essentially designed to give you an idea of ways to get out of your debt situation without resorting to bankruptcy. The credit counselor is not trying to persuade you to file or not to file. He or she is there only to provide you with information that you may not have received anywhere else. 

Contacting the bankruptcy court in your area or a qualified bankruptcy lawyer is the quickest way to find a local counseling agency that's approved for offering this type of counseling session. If you're considering bankruptcy, you should sign up for a session as soon as possible so that the 6-month wait time does not become a problem for you later.