Credit Counseling for Bankruptcy

About Credit Counseling

The BAPCPA also required individuals to under go credit counseling with a credit agency that is approved by the United States Trustee's Office prior to filing for Chapter 7 or Chapter 13 Bankruptcy. The goal of credit counseling course is to provide information about avoiding debt accumulation, create a repayment schedule or give advice to eliminate the need to file for bankruptcy. All repayment plans and evidence of completing the credit counseling class must be submitted to the bankruptcy court prior to filing for Chapter 7 or Chapter 13 Bankruptcy.

Individuals must also complete another credit counseling course to learn financial management prior to the discharge of debt under their bankruptcy plan. Evidence of the credit counseling completion must also be submitted to the bankruptcy court before the dismissal of debt under the bankruptcy process.