Chapter 7 - Solutions for a Financial Crisis

Before you’re legally allowed to file for Chapter 7 bankruptcy, you’ll have to complete a Credit Counseling Briefing with an agency listed in the registry of the U.S. Trustee’s office.

Keep in mind: this requirement is not optional! Many bankruptcy cases have been thrown out because the individual filing did not complete or file the credit counseling certification, and bankruptcy court judges have hardly any room to waive or offer an extension to complete this step. It cannot be stressed enough that the course must be completed before you file you bankruptcy petition.

You may complete the Credit Counseling Briefing in person, over the telephone, or via the Internet. Sessions that qualify include an evaluation of your personal finances, discussion of any possible alternatives to bankruptcy, and help you design a personal budget plan.

After you’ve finished, you’ll get a certificate of proof that you must include with your filing.

Where Can I Locate an Credit Counseling Agency that the Court Approves?

One option for an affordable, interactive, online credit counseling briefing can be found at www.startfreshtoday.com. Other approved courses are available directly from the U.S. Trustee’s list at www.usdoj.gov/ust/eo/bapcpa/ccde/cc_approved.htm.

Is Credit Counseling Expensive?

Of course the cost will vary depending on a number of factors, including where you live and whether you sign up for an online, phone or live course. However, the U.S. Trustee’s office states that the average course runs about $50. The Start Fresh Today Credit Counseling Briefing currently costs $30.

Law requires an approved agency to tell you the fees up front, without any extra cost for issuing the certificate.

When Should I Complete my Credit Counseling Briefing?

You must have completed the credit counseling briefing within six months before you file the bankruptcy petition.

I Have my Credit Counseling Certificate. Now What?

Your bankruptcy lawyer will file the credit counseling certificate along with your bankruptcy petition, as proof that you have observed the pre-filing requirement.

Are there Any Exceptions to the Credit Counseling Requirement?

There are very limited exceptions to the credit counseling requirement, and these are strictly prescribed by statute. Bankruptcy court judges have little or no authority to waive the credit counseling requirement. If for some reason you think you may not be able to complete the credit counseling requirement, speak with your bankruptcy attorney far in advance of your planned filing date to see whether or not you might fall under an exception and what documentation might be required.

Is This the Same Thing as the “Debtor Education” Course?

No, the Credit Counseling Briefing and the Debtor Education Course are two completely separate programs with separate certificates. However, you must successfully complete both if you are to receive a discharge in your bankruptcy filing. The Credit Counseling Briefing is done before bankruptcy filing, while the Debtor Education Course takes place after filing, but before discharge.

If you’d like to learn more about bankruptcy before getting started, feel free to explore the Chapter 7 website. You can learn more about the protections offered by Chapter 7 bankruptcy, including the automatic stay, as well as alternatives to Chapter 7 bankruptcy, such as Chapter 13 bankruptcy.

Whatever you choose to do, don’t let your creditors control your life any longer. Fill out our free bankruptcy case evaluation form and get in touch with a local bankruptcy attorney today.