Debt Counseling Agency
Chapter 7 Bankruptcy Process - Part 9 of 13
What do you need to know about a debt counseling agency as part of the personal bankruptcy process?
In addition to taking a pre-bankruptcy credit counseling course (see Part 3 of this Bankruptcy Process Section), the bankruptcy laws enacted in 2005 require that debtors (with limited exceptions) take a pre-discharge bankruptcy education course from a government-approved debt counseling agency after filing a Chapter 7 bankruptcy petition and prior to receiving discharge.
Approved providers vary from state to state. Use the state links in the left column to locate an approved debt counseling agency in your area.
Other Pre-Discharge Bankruptcy Education Course Information
It typically costs $50 - $100 for pre-discharge bankruptcy education, 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 debt conseling agency prior to the start of the session.
A typical pre-discharge bankruptcy education course lasts approximately two hours and can take place in person, by telephone, or online. As part of its services, the debt counseling agency will provide information regarding developing a budget, managing money and using credit wisely, as well as a certificate of proof.
This certificate of proof must be filed with the Court before it will grant a Chapter 7 bankruptcy discharge.
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