How to Obtain Your Bankruptcy Counseling Certificate

Obtaining a bankruptcy counseling certificate before and after filing for personal bankruptcy is vital for anyone who wants to have their debts discharged or pay back their creditors. According to the Bankruptcy Abuse Prevention Act of 2005, bankruptcy credit counseling is required when filing for chapter 7 and 13. In fact, pre-bankruptcy credit counseling is required at least 180 days before filing bankruptcy petitions. If the counseling isn’t completed, the bankruptcy petitions are automatically dismissed. Bankruptcy counseling certificates are provided after the counseling sessions are completed and must be provided to the U.S. Bankruptcy Courts as proof.

Bankruptcy Credit Counseling Must Come From A US Bankruptcy Courts Approved Credit Agency

People interested in filing bankruptcy must choose a credit counseling organization from the U.S. Bankruptcy Courts approved list. In addition to being on the list, the organization has to be from the judicial district where the bankruptcy petitions will be filed. For example, if you are planning to file bankruptcy in Columbus, the organization must be on the list and able to provide counseling in Columbus. Generally, the bankruptcy clerk’s office where individuals are planning to file can provide the approved list of credit counseling agencies.

Pre-Bankruptcy Credit Counseling Consists of One Session That Lasts 60 to 90 Minutes

Obtaining a pre-bankruptcy credit counseling certificate requires meeting with a credit counselor one time. The one-time session can be conducted either over the telephone, in person or online. For approximately 60 to 90 minutes, individuals discuss their financial situation with the counselor. During that time the counselor reviews people’s finances and suggest any alternatives they may have to filing bankruptcy. These alternatives can include negotiating with creditors to lower or pay down their bills. However, individuals aren’t required to take the suggestions. In other words, they can still file bankruptcy even if the credit counselor suggests bankruptcy alternatives.

Post-Filing Debtor Education Course Consists of a Two Hour Session

The post-filing debtor education course is completed after the bankruptcy petition is filed and confirmed. The course consists of working with a counselor to develop a budget and learning to manage money better. Just like the pre-bankruptcy credit counseling, this course can be taken over the telephone, online or in-person.

Seek Legal Assistance

Obtaining a credit counseling certificate is complex. Thus, it helps to consult a bankruptcy lawyer to make sure that the credit counseling agency is on the approved list.