About Bankruptcy’s Credit Counseling Pre-Filing Requirements

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The bankruptcy counseling and debtor education requirements were supposedly enacted to ensure that consumers have exhausted all other options, and to reduce the likelihood of a second visit to bankruptcy court. Some would say these requirements were enacted as a result of powerful banking industry lobbyists trying to make bankruptcy harder for the average person.

In most situations, prospective bankruptcy debtors must receive credit counseling within 180 days before a bankruptcy petition is filed. Debtors must also complete a course on debt management before they are eligible for the discharge of their debts. Upon completion of a U.S. Trustee-approved counseling and education programs, prospective debtors will be issued an authenticated certificate to file with the court.

Pre-bankruptcy counseling with an approved provider should include:

  • Complete review of personal finances;
  • Discussion and consideration of bankruptcy alternatives; and
  • Personal budget plan.

Credit counseling sessions typically take an hour and are available online, over the telephone, or in-person. Approved counseling organizations are required to provide free services to those who are unable to afford it. If this is the case, a prospective debtor may apply for a fee waiver before the session.

Reduce stress and the uncertainty that accompanies the inability to pay debts. The experienced South Florida defense attorneys at Loan Lawyers are here to help you if your financial position necessitates the consideration of a bankruptcy case filing under Chapter 7, 11, or 13.If you require assistance with any form of loss mitigation, contact our office today by calling (888) FIGHT-13 (344-4813) and see how we can help.