Counseling And Education Requirements During Bankruptcy

  • Counseling And Education Requirements During Bankruptcy

Counseling And Education Requirements During Bankruptcy

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Bankruptcy is certainly an unfortunate event, and it calls for an experience or learning. Bankruptcy might be about relieving stress and facilitating some financial relief to the filer, but it is also about making sure similar financial mistakes are not repeated. As per stats, over 15% of the filers can be repeated bankruptcy filers. These stats suggest people do not learn from their mistakes and keep falling into the debt trap due to poor financial management. The bankruptcy court hence mandates counseling requirements and a debtor education program that is part of the bankruptcy process.

Credit counseling

Credit counseling is a procedure that has to be done 180 days before the filing of a bankruptcy. This process involves brainstorming on how to effectively manage the credit scenario amongst lenders and find ways to come out of financial hardship without declaring bankruptcy. This credit counseling service is offered free of cost by many non-profit organizations. There is a fixed fee cap for the private players as well. You can log on to and reach out to some of the expert attorneys in the market for credit counseling and bankruptcy alternatives.

A certificate is awarded by the respective agency that concludes credit counseling for the filer. The same forms part of the bankruptcy mandate documents, while filing for bankruptcy. There can be some exemptions for credit counseling due to the unavailability of the counselor or if the filer is in a combat zone. The exemptions are rarely seen and since the counseling can be availed on the internet and the phone as well, it is very effortless to avail the same. You wouldn’t have to worry about finding counselors if you reside in Los Angeles, & Dallas, TX as many non-profit organizations is willing to offer help.

Debtor education course

Debtor education course is a mandatory requirement for Chapter 7 or Chapter 13 bankruptcy. This has to be completed between the start of the bankruptcy process and before the final judgment is announced. All the courses mandated, debtor education or credit counseling, it has to be pursued through a federally recognized agency. While the credit counseling course focuses on the very need for bankruptcy and how to manage the situation better, the debtor education course dives deeper into financial management tips and the right use of credit available to our disposal.

Ideally, after credit counseling and debtor education, the bankruptcy filer should be much wiser by the time the bankruptcy procedure is completed. The aim to mandate these learnings is at least that. If you have more questions, doubts, queries, or concerns regarding other procedural requirements and want to seek professional help during bankruptcy, 888-297-6203 is your number.