Credit Counseling Requirements in Bankruptcy

A Requirement of Filing: Credit Counseling Classcredit counseling

In 2005 Congress adopted new bankruptcy laws known as the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), one of the requirements of this new law included at requirement for debtors to obtain credit counseling from a government approved organization within 180 days before filing for bankruptcy protection.  After the debtor has filed for bankruptcy, they are required to complete another credit education course known as Debtor Education or Financial Management before they can obtain their discharge.

The pre-bankruptcy and pre-discharge courses may not be obtained at the same time. Credit counseling must take place before you file for bankruptcy; while debtor education takes place sometime after you file.  The Department of Justice’s U.S. Trustee Program approves organizations to provide the mandatory credit counseling and debtor education.

A pre-bankruptcy counseling session with an approved organization generally includes an evaluation of your personal financial situation, a discussion of alternatives to bankruptcy, and a personal budget plan. A typical session should last about 50 to 90 minutes, and can occur in person, on the phone, or online. Once you have completed the required credit counseling, you will receive a certificate, which must then be provided to your attorney, so they can submit it to the court with your original petition.

A post filing debtor education course includes information on developing a budget, managing money, using credit wisely, and other resources. Like pre-filing credit counseling, debtor education may be provided in person, on the phone, or online. The debtor education session might last longer than the pre-filing counseling, it could take two hours to complete.

Are you considering filing bankruptcy? contact David SmithOhio Estate Attorney at (937)-318-1529, to schedule a free in-office or telephone consultation and see how bankruptcy can help you eliminate your debt.  I will answer your questions including any you may have regarding credit counseling.  I provide assistance to those suffering under the weight of debt and can help you obtain your fresh start for a new tomorrow.