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Unlike most bankruptcy firms in the Dallas / Fort-Worth area, Allmand Law Firm, PLLC spends the time to understand the complete financial picture for every one of our clients. We provide resources, tools and advice to address the unique needs of North Texans.

Why Is Credit Counseling Required for a Bankruptcy Filing?

Posted By Allmand Law Firm, PLLC || 24-May-2016

Debtors who are considering filing for bankruptcy may wonder about the credit counseling requirement and why they have to complete it. In short, it is required because it is stated in the bankruptcy code. If you don't complete it, you may not be able to file your petition when you are ready to seek financial relief. The good news is the process is simple and many have found it useful, especially after the bankruptcy process is complete.

At Allmand Law Firm, PLLC, our Dallas bankruptcy lawyers do everything we can to prepare our clients not only for the bankruptcy process, but for a brighter financial future as well. Naturally, this open discussion about information and resources that can help them repair and rebuild their credit. Because we often receive questions about the credit counseling requirement from clients, we’ve provided some helpful information about the course:

  • The credit counseling course should be completed at least 24 hours prior to filing your petition. You may not be able to file your petition on the same day as completing your course.
  • Your attorney needs to have documentation, such as a certificate of completion, on hand when your petition is filed or you cannot proceed with filing a case.
  • Some debtors have a lot of questions about the cost, what is done during the course, and what happens if you fail. The course is affordable and your attorney can recommend options that are inexpensive. You can complete the course in the privacy of your own home with government-approved agencies via phone, internet or in-person. You will be asked questions regarding your personal situation and gain useful information you can use in the future.

Keep in mind, in order to receive a discharge of debts at the end of your case you need to complete a second course: Financial Management. It is the same deal as the first course with different useful content (managing money, budgeting, etc.) and can be done over the phone, via internet or in-person through an approved agency.

Achieving better financial health is a comprehensive journey that requires diligence and smart financial habits – habits you can gain by working with our firm and educating yourself on credit management. To learn more about credit counseling or to discuss your situation and whether bankruptcy is an option for you, contact Allmand Law Firm, PLLC for a FREE financial empowerment session.

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