Filing For Bankruptcy? Understanding The Counseling Requirement

By Author: Charles Finn
Total Articles: 2
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After the Bankruptcy Reform Act of 2005 became law, with limited exception, it's mandatory for people who are filing for bankruptcy to take both a prefiling debtor education class as well as a predischarge financial management class . The prefiling debtor education class needs to be taken at least 1 day prior to the filing of the bankruptcy petition. The predischarge class has to be completed within 45 days after the 1st setting of the meeting of creditors. The debtor must get counseling and certification from a non-profit credit-counseling agency before the forms may be filed for the bankruptcy. You will need to receive the counseling from an approved credit counseling agency from the district where you are filing for bankruptcy. If you're filing with the help of a bankruptcy attorney, the attorney will know and refer you to an approved credit counseling agency. In case you are filing for bankruptcy without an attorney, it is advisable to check with the United States Trustee's Office for your District for a listing of approved counseling agencies. In case you are filing for bankruptcy in either North Carolina or Alabama, ...
... it is advisable to check with the Bankruptcy Administrator's Office for a list of approved counseling agencies for your district. Most counseling agencies offer a "package" deal wherein you can purchase both the prefiling debtor education course plus the postfiling financial management course simultaneously for a discount. This is certainly a good deal and for those who have the financial resources, you should definitely consider doing so. However, check to ensure that your district does not offer the postfiling financial management course for free. Some districts offer the postfiling course at no cost at the initial meeting of creditors. Knowing that you can obtain the financial management course free of charge can save you $30 to $40. The credit counseling sessions aren't very difficult. However, you need to have documents reflecting your monthly income and expenses so that you can complete the counseling sessions. Most counseling sessions can be done online. However, there are options for people who prefer to take the counseling session by telephone.Once your counseling session is complete, the majority of counseling providers will notify your attorney directly. The attorney will be given the certification that you have completed the required counseling and your attorney can provide that certification to the court. The prefiling certification, absent a waiver, needs to be provided to the Clerk of the Bankruptcy Court when the bankruptcy petition is filed.There are few exceptions to the credit counseling requirement. Infrequently, a motion is filed with an emergency petition requesting the counseling session be taken after the filing of the bankruptcy petition. Often it's done when the debtor files for bankruptcy on the day of or the day before a foreclosure sale on their property. A request like this should be the exception as opposed to the rule. If there's any possible way to finish the course before the filing of the bankruptcy petition, it must be completed.Michael Dye is a Florida Bankruptcy Attorney with offices located in Fort Lauderdale, Broward County, Florida. The law office is a debt relief agency and assists individuals filing for protection under the United States Bankruptcy Code. For further information, please call (954)745-5848 or click Broward County Bankruptcy Attorney to visit our website.