Before filing for bankruptcy, the individual seeking debt relief must receive credit counseling from an agency approved by the Bankruptcy Court.
During bankruptcy, debtors must complete a course on debt management before their eligible debts may be discharged.
If you are considering a bankruptcy filing in Florida, you need to understand these and other requirements. Bankruptcy is a complex and time-consuming legal process outlined in federal law, allowing individuals who are unable to repay their debts to obtain relief from their financial obligations.
Filing for bankruptcy can be an effective way to get a fresh start if you’ve been struggling with debt. In South Florida, the bankruptcy attorneys of the Loan Lawyers Law Firm in Fort Lauderdale can guide you through a bankruptcy filing and ensure you meet the requirements of a successful filing at every step of the way.
You have a right to relief from overwhelming debt. Reach out online or call today to set up your free legal consultation about whether bankruptcy is the right step for you. We’re committed to doing what’s best for you and treating you with respect, dignity, and kindness. Call us today to learn about your options.
What Is Bankruptcy Credit Counseling?
The federal Bankruptcy Code requires debtors to complete bankruptcy credit counseling within 180 days (about six months) of filing a bankruptcy claim. The session covers the bankruptcy process, its potential consequences, alternative solutions to debt, and a review of your finances.
Upon completion, you will be issued an authenticated Certificate of Credit Counseling, which must be submitted as part of your bankruptcy petition filed with the Court.
If you fail to submit the Certificate of Credit Counseling as part of your bankruptcy filing, your case will be summarily dismissed.
What Happens During Bankruptcy Credit Counseling?
During pre-filing bankruptcy credit counseling, a certified financial counselor will discuss with you whether bankruptcy is the answer to your financial problems or whether other steps would serve you better. A session should cover the following:
- Complete review of your personal finances
- Discussion and consideration of bankruptcy and alternatives
- Development of a personal budget plan.
To prepare for bankruptcy credit counseling, you should gather the following documentation:
- Income, such as pay stubs, tax forms, Social Security statements, alimony and child support orders, etc.
- Expenses, such as records of your mortgage or rent payments, food costs, insurance, childcare, utilities, transportation, etc.
- Debts, including statements for credit cards, student loans, auto loans, personal loans, loans against a retirement plan, etc.
There is no requirement to follow advice received in pre-bankruptcy counseling.
Cost of Pre-Bankruptcy Credit Counseling in Florida
There is a fee of $10 to $50 for what is generally a one-hour session of pre-bankruptcy credit counseling, conducted in person, over the phone, or online. If you cannot afford it, you may request that the fee be waived or reduced.
In limited cases, such as those involving mental illness, disability, or active military duty in a combat zone, a debtor may be exempt from the pre-bankruptcy credit counseling course.
A bankruptcy attorney would be able to help you if you qualify to be exempted from pre-bankruptcy credit counseling or need the fee reduced or waived.
How to Choose a Florida Credit Counseling Provider
If you are already working with the total debt solution law firm of Loan Lawyers, we can help you find a bankruptcy credit counseling course that fits your specific needs. Otherwise, you may consult searchable online directories sponsored by the following:
- U.S. Department of Justice, which oversees the U.S. Bankruptcy Trustee Program and has a nationwide directory of approved credit counseling agencies.
- DebtorCC.org, a nonprofit organization that provides the pre-filing bankruptcy credit counseling course and the post-filing debtor education class (see below) required in Florida.
- National Foundation for Credit Counseling (NFCC), a nonprofit network of agencies that offer credit counseling.
What is Bankruptcy Debtor Education?
After filing for bankruptcy, you will have a second educational session about managing your finances after bankruptcy to look forward to.
You must complete bankruptcy debtor education before any of your debts can be discharged. Discharging, or forgiving, debt is a substantial part of the relief sought in Chapter 7 bankruptcy, as well as in a Chapter 13 debt reorganization proceeding.
Typically, you should complete the second bankruptcy course before your bankruptcy hearing. Though you will not be graded, you will be required to answer questions to demonstrate that you understand the information provided.
The bankruptcy debtor education course is usually a two-hour session that covers the following:
- Budgeting
- Managing money
- Managing credit
- Reducing expenses
- Establishing financial goals
- Keeping financial records
- Consumer protection laws
As with the pre-bankruptcy credit counseling course, the second bankruptcy class may be taken in person, online, or by telephone for a fee of $10 to $50. See the U.S. Justice Department or nonprofit organization websites above or speak with your bankruptcy lawyer to find a class. Many organizations offer both classes.
Your bankruptcy attorney can also help if you qualify for a reduced or waived fee or have reason to be exempted from the bankruptcy debtor education course requirement.
Contact Our Florida Bankruptcy Attorneys for Help
The Fort Lauderdale bankruptcy lawyers at Loan Lawyers can help you determine whether bankruptcy is the right choice for you and, if so, ensure that your bankruptcy process goes smoothly. Our team is well-versed in multiple areas of debt mitigation, bankruptcy, foreclosure defense, and litigation. We’ll fight for the best solution tailored to your specific financial needs if you decide to declare bankruptcy.
Our attorneys can review your entire debt situation to see how you may benefit from the many state and federal regulations that exist to protect consumers’ rights when facing debt problems. We’ve helped more than 7,000 clients in Florida get out of debt and get a fresh start, and we’ve saved over 3,000 homes and properties from foreclosure. Let us utilize our vast knowledge and experience, along with our willingness to fight for our clients’ rights, to work for you.
Call us today at (954) 523-HELP (4357) in Fort Lauderdale, Florida, or reach out online for a free review of your financial situation and a discussion of a potential bankruptcy case.
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Loan Lawyers is made up of experienced consumer rights attorneys who use every available resource to develop comprehensive debt solution strategies. Our goal is to take on those burdens, resolve those problems, and allow our clients to sleep soundly knowing they are on the path to a better future.
