Pre Bankruptcy Credit Counseling

According to the new bankruptcy laws that were passed in 2005, in order to file for bankruptcy a debtor needs to attend a pre bankruptcy credit counseling session. This pre bankruptcy credit counseling session is meant to be completed before you file your application for bankruptcy. There is a list of approved pre bankruptcy credit counseling courses that can be used to satisfy this requirement. You can find a copy of this list on the internet with a simple search or at the Department of Justice website.

The sessions typically last about sixty to ninety minutes and involve discussion of your financial situation, options you might be able to take besides bankruptcy, and help with a personalized budget plan. Some credit counseling organizations also give you an overview of the bankruptcy process so you know a bit more about what this process involves.

There is typically a fee involved for this pre bankruptcy credit counseling of approximately $50, but you can request that this fee be waived if you cannot afford it. You should make a request to waive the pre bankruptcy credit counseling fee before you begin your pre bankruptcy credit counseling session, otherwise you might be presented with a bill.

In order to prove that you have finished this pre bankruptcy credit counseling requirement, you need to get a certificate from the credit counselor. These certificates come from a central location and are numbered to help prevent fraud. The credit counseling organization is not allowed to charge any extra fees for these certificates.

When choosing a pre bankruptcy credit counseling organization from the approved list, you should make sure to find out what services they offer, how much the fees are and what options they have if you cannot afford the fees, how qualified the counselors are, do they protect your information and keep it confidential, and will they help you develop a plan to keep from getting too far into debt again? Call around to see which pre bankruptcy credit counseling organization best suits your needs before making a decision and setting up an appointment.

At the end of your pre bankruptcy credit counseling session, the credit counseling organization may try to sell you their services, but you are not legally required to purchase any of these services in order to be in compliance with the pre bankruptcy credit counseling requirement, or to receive the certificate showing that you have completed your pre bankruptcy credit counseling. Some of the credit counseling organizations allow you to complete your pre bankruptcy credit counseling session over the internet or over the phone at any hour of the day, making this an requirement easier than ever to complete.