Bankruptcy credit counseling is generally conducted prior to and after filing for bankruptcy to ensure the debtor is educated about the bankruptcy filing and finances in general.
Credit Counseling - What To Expect
Recent laws have imposed a requirement on all debtors who file bankruptcy to participate in pre-filing and pre-discharge credit counseling. A credit counseling agency can help the debtor by going over budgeting tools and assessing the debtors expenditures and debts. Many people are able to take care of this requirement over the phone.
Here is what you can expect from your credit counseling:
- Pre-bankruptcy credit counseling must take place before you file for bankruptcy. At completion, you should receive a certificate of completion from the credit counseling agency. This session will last approximately 90 minutes. You will be charged a fee for this certification, but it is generally less than $100.
- Debtor education occurs after you file, but generally before final dissolution. You will likely discuss how to develop a budget, use credit wisely and other financial matters during this session. You will also be charged a fee to complete the debtor education requirement. It is usually $100 or less.
- Waivers may be available for individuals who cannot afford the fees associated with credit counseling and debtor education.
- You need to select a program that is certified under the United States Trustee's Program which is run by the Department of Justice. These are the only companies authorized to certify that you have completed legally legitimate counseling and education requirements.
- Do not be fearful of talking to these agencies. They can actually be very helpful in assessing your financial situation. You need to gain new skills to make sure you do not end up repeating any financial mistakes that got you into the situation you currently face. Not everyone has been educated on financial matters. Bankruptcy can give you a fresh financial future. Gaining proper skills to make sure you handle it well is up to you. The credit counseling requirement and debtor education course is meant to help you attain this goal.
Getting Legal Advice
Once you hire a bankruptcy attorney, you will usually be provided information about where and when you need to conduct credit counseling. An attorney will also help you decide whether bankruptcy is right for you, and if it is right for you, which chapter to file.
