Bankruptcy Credit Counseling

Attend Pre-Bankruptcy Credit Counseling
Section 3 of "The Chapter 7 Bankruptcy Process"

The new bankruptcy laws enacted in 2005 require that potential filers (with limited exceptions) take a credit counseling course from a government-approved agency within six months prior to filing bankruptcy.

Approved bankruptcy credit counseling agencies vary from state to state. Use the state links in the right column to locate an approved provider in your area.

There is a small fee (approximately $50.00) for pre-bankruptcy credit counseling, but this fee may be waived depending on your ability to pay.  If you are requesting a fee waiver, make sure it is requested and received from the credit counseling provider prior to the start of the counseling session. 

A typical bankruptcy credit counseling session lasts approximately sixty to ninety minutes and can take place in person, by telephone, or online.  As part of its pre-bankruptcy counseling services, the agency will discuss bankruptcy alternatives and provide you with an evaluation of your financial situation, a personal budget plan, and a certificate of completion. 

You will need to provide the certificate of completion to your attorney to file with your bankruptcy petition. In addition, although debt management plans (discussed in Section 2 of this article) are not a bankruptcy requirement, if one is used, a copy of the plan must also be provided to the Court when the bankruptcy petition is filed.

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This page is Section 3 of the following 13-part article:

1. Introduction to Chapter 7 Bankruptcy
2. Investigate Alternatives
3. Attend Pre-Bankruptcy Credit Counseling
4. Select an Attorney
5. Attend Initial Consultation
6. Complete Bankruptcy Questionnaire
7. Finalize and Sign Bankruptcy Documents for Filing with Court
8. Prepare for and Attend Section 341 Meeting of Creditors
9. Attend Pre-Discharge Bankruptcy Education Course
10. Turn Over Nonexempt Assets to Case Trustee
11. Distribution of Nonexempt Assets to Creditors
12. Receive Discharge
13. Order Closing Case