The Facts on Bankruptcy Credit Counseling

bankruptcy credit counseling

Bankruptcy credit counseling is one of the steps to filing for Chapter 7 or Chapter 13.

The purpose of this course is to evaluate your financial situation and give you a chance to explore alternative options for managing your debts, such as working out a budget and repayment plan. Upon completion, you will be issued a certificate to file with the bankruptcy court.

Have questions about credit counseling? The following guide explains the basic facts on this bankruptcy requirement.

Bankruptcy Credit Counseling Is Not Optional

Everyone who files for Chapter 7 or Chapter 13 must take a course – a bankruptcy attorney cannot get you out of it. To meet the legal requirement, the course must be from a consumer agency approved by the U.S. Trustee Program.

Course Completion Is Required Before Filing Your Bankruptcy Claim

Credit counseling is a part of the pre-bankruptcy process – it’s not the same as the debtor education requirement, which comes after you file a claim. According to federal law, you must take the course within the six-month period before filing for bankruptcy.

Completing the Course Is a Fast & Easy Process

From start to finish, credit counseling usually takes only around an hour or two. To make meeting this bankruptcy requirement even easier, you have the option of completing the course in person, over the phone or online.

Bankruptcy Credit Counseling Fees Are Affordable

Courses come with reasonable fees, typically somewhere around $25 to $50. If you cannot afford to pay, don’t worry — counseling agencies are required to provide free or reduced-rate services for low-income bankruptcy filers.

You Do Not Have to Agree to a Repayment Plan

If the counseling agency suggests a repayment plan, you must file it with the court along with the certificate of completion. However, you don’t have to go along with the plan the agency proposes — bankruptcy law only requires you to complete the course.

If you’re planning to file for Chapter 7 or Chapter 13, hiring an experienced bankruptcy attorney is in your best interests. For expert advice and legal guidance in the greater Salt Lake City area and the surrounding northern Utah communities, turn to the Law Office of Davis & Jones.

Our legal team has a combined 40 years of bankruptcy law experience, and we’ve already helped more than 20,000 Utah residents get a fresh financial start. We can assist with every aspect of your case, easing your stress and ensuring everything goes smoothly.

Let the Law Office of Davis & Jones, P.C., help you get back on your feet. For more information on bankruptcy credit counseling, contact our Salt Lake City office and schedule a free consultation today.