Credit Counseling Before Bankruptcy and Debtor Education Before Bankruptcy Discharge
All individuals filing for bankruptcy are required to have credit counseling prior to filing and debtor education after filing and before discharge...
All individuals filing for bankruptcy are required to have credit counseling prior to filing and debtor education after filing and before discharge. These classes cannot be taken at the same time and a certificate of completion is required for each from an approved US Trustee Program.
The credit counseling program is necessary to determine whether the individual actually needs Chapter 7 or Chapter 13 bankruptcy protection. You can complete your counseling certificate over the telephone as long as your agency is US Trustee approved. Your income and expenses will be reviewed to determine your long and short term financial goals and if bankruptcy is your only option.
The debtor education program must occur before you can be discharged from bankruptcy to educate you on money management. This is like a safeguard to help you avoid future bankruptcies. You will go over budgeting, credit, and financial crisis in order to complete your certificate, again by an approved US Trustee agency.