What to Expect at Bankruptcy Counseling

Whether you are filing a Chapter 7 or a Chapter 13 bankruptcy, you will need to participate in a pre-filing counseling course and a post-filing debtor education course. Generally, most bankruptcy-counseling and debtor education providers offer the option to take these courses online, in person, or by telephone. Since every bankruptcy case is unique, there will be differences with each individual's bankruptcy counseling sessions and debtor education courses. Listed below is a general outline of what one can expect from a typical bankruptcy counseling session and debtor education course.

Bankruptcy Counseling and Education Requirements

As a standard rule, you must take the pre-filing bankruptcy counseling and post-filing debtor education courses separately. Pre-bankruptcy filing credit counseling must take place within 180 days before you can file for bankruptcy; a debtor education course must take place after the bankruptcy filing in order for a discharge to be granted. These courses must be administered by a government-approved agency.

Pre-filing Bankruptcy Counseling Course

A pre-bankruptcy counseling course typically lasts between 60 to 90 minutes. The session should include discussing bankruptcy alternatives, a personal financial evaluation, and personal budgeting. Costs can vary by each course provider with the average cost being approximately $50. If you cannot afford to pay this fee, request a fee waiver from the course provider before your credit counseling session begins. A certificate of completion is given to you or your attorney once the course is successfully completed.

Post-filing Bankruptcy Debtor Education

After filing for bankruptcy, you must take an approved post-filing debtor education course. Most people take this course through the same provider that they took the pre-filing counseling course through. Debtor education sessions typically take longer than a pre-filing counseling course, with the average session lasting approximately two hours.

Developing a personal budget, money management, understanding credit card use, and identity theft are common topics discussed in post-filing debtor education courses. The costs range from $50 to $100 for debtor education sessions. Like pre-filing courses, a fee waiver is available for those who cannot afford to pay the fees. A certificate as proof of completion is given once you complete this course as well.

Discuss Your Options with a Bankruptcy Attorney

Since pre-filing counseling and post-filing debtor education courses are now mandatory, many bankruptcy attorneys are collaborating with government-approved providers to make it easier on their clients to get the bankruptcy counseling and debtor education courses they need. Therefore, if you are considering filing for bankruptcy, speak to a bankruptcy attorney that can discuss your credit counseling and debtor education options in further detail with you.

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