One aspect of filing for bankruptcy you may be wondering about is the credit counseling. Fortunately, this is not a weeks-long course, but rather a quick task that most filers should complete within an hour. It is important that you plan your credit counseling wisely, because it must be done before you file for bankruptcy.
What Is Credit Counseling and Who Must Complete Credit Counseling?
Pre-bankruptcy credit counseling is required under the federal Bankruptcy Code to be completed by all debtors before they can file a petition. If they file their petition without completing the counseling, the court will immediately dismiss their case, even if they did their counseling after the filing occurred. It can be done online or over the phone, and it generally takes our clients anywhere from 30 to 60 minutes to complete. You will receive a certificate at the end of the course, which certifies you have completed the counseling as required.
When Do I Receive Credit Counseling?
Debtors need to be proactive in completing pre-bankruptcy credit counseling. It can be done any time in the six months before filing a bankruptcy petition. If more than six months have passed since your certificate was received, you will need to retake it to move forward with your bankruptcy.
There is no need to consult an attorney while taking the credit counseling, as you should be able to answer all questions on your own. It will ask what kind of debts you have, your income, expenses, and other things which will impact your plan of reorganization.
Documents Debtors Should Have When Consulting With a Credit Counselor
It is generally good to have a pay stub and tax return on hand. If you have a recent credit report, that would also be great to have. If you do not have one, you should still have your credit card statements (and checkbook, if you have one) in front of you, so you know who you owe money to because that is generally what the counselors will need to see. They will want to know how much you pay for those debts, how much money you make, and what other expenses are present in your household, like heat and gas.
Learn More About the Credit Counseling Certificate When You Call Our Bankruptcy Attorneys
Pre-bankruptcy credit counseling is required to file for bankruptcy. It should be quick and easy, but you need to be aware of the timeline. Call Gillman Capone and speak with a local bankruptcy lawyer to discuss what you need to do next.
