Credit & Debt Counseling Requirements For Bankruptcy
If you are considering filing for bankruptcy, you'll want to review the credit counseling requirements that need to be completed in order for debt to be discharged. There are organizations that have been approved by the federal government to provide credit counseling and debtor education. Debtor education is also a mandatory requirement that is separate from credit counseling but taken after the filing of your bankruptcy petition has started.
Credit counseling, also known as pre-bankruptcy credit counseling, is required for debtors to complete within 180 days before filing bankruptcy. The counseling session can take place by phone, online or in-person. The session lasts from about 60 to 90 minutes. There is a fee associated with the session that the organization should discuss with you prior to completion, but you may qualify to have it waived. Upon completing the course you should receive a certificate that verifies proof.
The post-filling debtor education course reviews pertinent information to debtors about budgeting and managing finances. This can also be completed in the same fashion as credit counseling; by phone, online or in-person. The session may last about 2 hours or so. There is a fee associated with the session but you may also qualify to have it waived depending on qualifications of the organization. Upon completion of the course you'll obtain a certification as proof verification.
You have the option to choose the organization to complete credit counseling and debtor education or get recommendations from a qualified bankruptcy attorney . Make sure to thoroughly review the company's background to make sure they are government-approved. Ask question about services, fees and accreditation.