What is Bankruptcy Credit Counseling? How Many Bankruptcy Credit Courses Should I Take?

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What Is Bankruptcy Credit Counseling? Is The Bankruptcy Credit Course Hard? Do I Have To Take 2 Bankruptcy Credit Courses?

I get a lot of clients that are pretty worked up about taking and completing the consumer credit counseling classes that, since 2005, are a required step in filing for bankruptcy. This is why I want to take a few minutes to shed some light on the process – like most things, these classes are a lot less scary when you turn the lights on.

The following exerpts are taken from the FTC website. I believe it provides a good introduction to the requirements for bankruptcy credit counseling classes:

Before You File for Personal Bankruptcy:

Information About Credit Counseling and Debtor Education

Produced in cooperation with the Department of Justice’s U.S. Trustee Program

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 launched a new era: With limited exceptions, people who plan to file for bankruptcy protection must get credit counseling from a government-approved organization within 180 days before they file. They also must complete a debtor education course to have their debts discharged.

The Department of Justice’s U.S. Trustee Program approves organizations to provide the mandatory credit counseling and debtor education. Only the counselors and educators that appear on the U.S. Trustee Program’s lists can advertise that they are, indeed, approved to provide the required counseling and debtor education. By law, the U.S. Trustee Program does not operate in Alabama and North Carolina; in these states, court officials called Bankruptcy Administrators approve pre-bankruptcy credit counseling organizations and pre-discharge debtor education course providers.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Christopher Ariano, Ariano and Reppucci PLLC | Attorney Advertising

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