Personal Bankruptcy Credit Counseling
Ever since the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 was put into place, individuals who wish to file personal bankruptcy must go through required credit counseling. This counseling must be through a pre-approved government organization and has certain other stipulations as well. Before you file personal bankruptcy, here are the things you need to know about your credit counseling and education requirements.
How Many Classes Need to Be Completed When You File Personal Bankruptcy?
There are actually two separate requirements involved in filing personal bankruptcy. Here’s the scoop on both of requirements:
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- Within a six month period before filing bankruptcy, you will need to receive government approved credit counseling. That is one requirement.
- After credit counseling, you will need to complete a debtor education course in order to have your debts discharged. That’s the second requirement.
Why Can’t Both Requirements for Filing Personal Bankruptcy Be Taken Care of at the Same Time?
That’s the rules. Pre-bankruptcy credit counseling may not be completed at the same time as your pre-debt discharge education. Credit counseling must always precede the debtor education. Before your debts are discharged, you must provide a copy of your certificate to the court.
Pre-Bankruptcy Counseling Facts
What happens during your pre-bankruptcy counseling session? They may vary slightly, but each one should include an evaluation of your personal financial situation, possible alternative solutions to bankruptcy, as well as help with developing a personal budget.
Don’t make the mistake of just breezing through this information. This is part of your financially successful future and every part of your financial counseling will be useful to you.
A typical counseling session will last between one and two hours and sessions can be face-to-face, or take place over the phone or even online. If you can’t afford to pay for credit counseling, it will be provided to you free of charge. You’ll need to request a fee waiver fist though. Don’t show up at your appointment expecting not to pay. Once your counseling is complete, a certificate will be issued as proof of your completion.
Post-Filing Debtor Education
Your required post-filing debtor education will further prepare you for a successful future after you file personal bankruptcy. A typical post-filing class will consist of more budget development tools, a section on managing your money more effectively, and tips on how to use credit responsibly.
This part of your counseling and education requirements can also take place in person, over the phone, or online. The typical post-filing debtor education course will last between two and three hours and cost up to $100. As with pre-filing counseling charges, if you can not pay the fee, simply file for a waiver. After you complete the post-filing debtor education you will receive certification that will discharge your debts.
In order to choose the right credit counselor, be sure to check the credentials of the organization offering the education. You can obtain a list of approved classes at www.usdoj.gov or by checking with the bankruptcy clerk’s office in your filing district.
The proper steps in the proper order will make things go smoothly when you are ready to file personal bankruptcy.
