As part of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, debtors?@are required to get credit counseling before they are permitted file for bankruptcy. This counseling requirement applies to all debtors seeking to file for bankruptcy under either Chapter 7 or Chapter 13.
What Are the Bankruptcy Counseling Requirements?
Before applying for bankruptcy under Chapter 7 or Chapter 13, debtors must attend credit counseling from an agency approved by the U.S. Trustee's Office. The United States Trustee’s Office provides a list of approved agencies on its website. This counseling is to determine if it is really necessary for you to file for bankruptcy or if an informal repayment plan could help you avoid filing for bankruptcy.
The counseling is a requirement is mandatory, which means that it cannot be avoided. While you are required to participate, you not compelled to go along with any repayment plan that is proposed by the agency. If the agency does come up with a repayment plan, you must submit it to the court along with the certificate of completion before you can file for bankruptcy.
There are additional counseling requirements before you can wipe out your debt through bankruptcy. The purpose of these additional counseling sessions is to learn personal financial management. You will need to submit to the court the certification of completion for this counseling before you can get a discharge wiping out your debts.
Do I Need A Bankruptcy Attorney?
Filing for bankruptcy is a difficult and emotional process. A bankruptcy attorney knows the requirements of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, and they can help answer your questions and explore your options.