What is the pre-discharge counseling session for in a bankruptcy case?

Part of the filing chapter 7 process is having to complete two sessions of counseling. One is pre-filing, the other is pre-discharge. The pre-discharge sessions can be done any time before the 341 meeting and up to 45 days after. It must be done before time is up in order to be able to obtain a successful discharge.

What Happens in the Pre-Discharge Counseling

The petitioner will find themselves in a course that's more in depth than the pre-filing class. More time is spent and more information has to be gone through. The purpose is to ensure that the petitioner has learned their lesson from filing and understands how to avoid this situation in the future. Bankruptcy courts do not want to become a revolving door for debtors who haven't learned from their missteps in the past, hence the counseling requirement.

All counseling is given by a not-for-profit agency that is approved to counsel in the debtor's state. Any entity that is not registered as a 501(c)3 with the IRS is not legitimate. Certificates from a for-profit will not be accepted by the court.

Consult a Lawyer Before Filing

Bankruptcy is no walk in the park. Trying to do a complicated bankruptcy pro-se can cause more problems than not. Hire a lawyer to avoid trouble before any can start. You'll ensure a smooth proceeding from start to finish with a lawyer as your advocate.