Filing For Bankruptcy? Understanding the Counseling Requirement
After the Bankruptcy Reform Act of 2005 became law, with limited exception, it's mandatory for people who're filing for bankruptcy to take both a prefiling debtor education class as well as a predischarge financial management class . The prefiling debtor education class has to be taken no less than 1 day before the filing of the bankruptcy petition. The predischarge class has to be completed within 45 days after the 1st setting of the meeting of creditors.
The debtor must get counseling and certification from a non-profit credit-counseling agency before the forms can be filed for your bankruptcy. You must get the counseling from an approved credit counseling agency from the district where you are filing for bankruptcy. If you are filing with the assistance of a bankruptcy attorney, the attorney will know and refer you to an approved credit counseling agency. For those filing for bankruptcy without an attorney, it's best to check with the United States Trustee's Office for your District for a list of approved counseling agencies. For anybody who is filing for bankruptcy in either North Carolina or Alabama, it is advisable to check with the Bankruptcy Administrator's Office for a listing of approved counseling agencies in your district.
Most counseling agencies provide a "package" deal wherein you can purchase both the prefiling debtor education course along with the postfiling financial management course at the same time to get a discount. This is certainly a good deal and if you have the financial resources, you should definitely consider doing so. However, check to make sure that your district does not offer the postfiling financial management course for free. Some districts offer the postfiling course free of charge at the initial meeting of creditors. Knowing you can obtain the financial management course without cost can save you $30 to $40.
The credit counseling sessions aren't very difficult. However, you need to have documents reflecting your monthly income and expenses to be able to complete the counseling sessions. Most counseling sessions can be done online. However, there are options for individuals who prefer to take the counseling session by telephone.
Once your counseling session is complete, the majority of counseling providers will notify your attorney directly. The attorney will be provided with the certification that you have completed the required counseling and your attorney can provide that certification to the court. The prefiling certification, absent a waiver, need to be provided to the Clerk of the Bankruptcy Court when the bankruptcy petition is filed.
There are hardly any exceptions to the credit counseling requirement. On occasion, a motion may be filed with an emergency petition requesting the counseling session be taken after the filing of the bankruptcy petition. Often this is done when the debtor files for bankruptcy on the day of or the day before a foreclosure sale on their property. A request like this should be the exception and not the rule. If there exists any possible way to finish the course before the filing of the bankruptcy petition, it must be completed.
The debtor must get counseling and certification from a non-profit credit-counseling agency before the forms can be filed for your bankruptcy. You must get the counseling from an approved credit counseling agency from the district where you are filing for bankruptcy. If you are filing with the assistance of a bankruptcy attorney, the attorney will know and refer you to an approved credit counseling agency. For those filing for bankruptcy without an attorney, it's best to check with the United States Trustee's Office for your District for a list of approved counseling agencies. For anybody who is filing for bankruptcy in either North Carolina or Alabama, it is advisable to check with the Bankruptcy Administrator's Office for a listing of approved counseling agencies in your district.
Most counseling agencies provide a "package" deal wherein you can purchase both the prefiling debtor education course along with the postfiling financial management course at the same time to get a discount. This is certainly a good deal and if you have the financial resources, you should definitely consider doing so. However, check to make sure that your district does not offer the postfiling financial management course for free. Some districts offer the postfiling course free of charge at the initial meeting of creditors. Knowing you can obtain the financial management course without cost can save you $30 to $40.
The credit counseling sessions aren't very difficult. However, you need to have documents reflecting your monthly income and expenses to be able to complete the counseling sessions. Most counseling sessions can be done online. However, there are options for individuals who prefer to take the counseling session by telephone.
Once your counseling session is complete, the majority of counseling providers will notify your attorney directly. The attorney will be provided with the certification that you have completed the required counseling and your attorney can provide that certification to the court. The prefiling certification, absent a waiver, need to be provided to the Clerk of the Bankruptcy Court when the bankruptcy petition is filed.
There are hardly any exceptions to the credit counseling requirement. On occasion, a motion may be filed with an emergency petition requesting the counseling session be taken after the filing of the bankruptcy petition. Often this is done when the debtor files for bankruptcy on the day of or the day before a foreclosure sale on their property. A request like this should be the exception and not the rule. If there exists any possible way to finish the course before the filing of the bankruptcy petition, it must be completed.
Source...