Before a debtor can file for bankruptcy, they must complete a pre-bankruptcy credit counseling session with an approved provider. Sadly, most simply see this as a part of the process when, in fact, it is a prime opportunity. In fact, for some, the pre-bankruptcy counseling session could be exactly what is needed to avoid filing for bankruptcy. However, even when that is not the case, debtors stand to learn a lot about their financial future. Learn more about how to make the most out of your pre-bankruptcy credit counseling session, and discover how an experienced attorney can assist you with the bankruptcy process.

What Happens During Pre-Bankruptcy Credit Counseling?

Although pre-bankruptcy credit counseling sessions may vary slightly in their curriculum, all include an analysis of your current financial situation, a discussion on what alternatives may be available to you, and a personal budget plan. Debtors may be asked to complete these elements of the course over the phone, in person, or online. Once the debtor has completed the course, they should be issued a certificate of completion. (Note that debtors should not be charged an additional fee for their certificate of completion.)

Finding a Pre-Bankruptcy Credit Counselor

It is crucial that debtors obtain their credit counseling from sources that are approved by the federal government. Debtors are also encouraged to find a counselor that suits their needs. To ensure that you meet both requirements, consider asking some of the following questions of any possible pre-bankruptcy credit counselor or pre-bankruptcy credit counseling agency:

• What services do you offer?
• How much do you charge?
• What if I am unable to pay your fee?
• What qualifications do your counselors have?
• Can you help me develop a plan to avoid similar debt issues in the future?
• Are your employees paid more if I sign up for certain services?
• Where and how will I complete the course?

Getting More Out of Your Session

Some debtors may see pre-bankruptcy counseling as just another step in the bankruptcy process, but smart consumers recognize that this required step is also an opportunity. You can learn a lot about your spending habits, increase your financial literacy, and create a plan for the future. At the very least, you could use your new budget to improve your current financial circumstances. Just keep in mind that you may need a new budget once the bankruptcy ends.

Contact Our Collin County Bankruptcy Attorney

The Page Law Firm recognizes that bankruptcy is not an easy decision. We stand by you, every step of the way, giving you the information, tools, and assistance you need to move forward with your life. Make the most of your new start and contact our Collin County bankruptcy attorney for personalized, no-obligation consultation. Call 214-618-2101 today.

Sources:

https://www.justice.gov/sites/default/files/ust/legacy/2011/07/13/FTC_Consumer_AlertCC.pdf

http://www.uscourts.gov/services-forms/bankruptcy/credit-counseling-and-debtor-education-courses