The Facts About Credit Counseling

Bankruptcy clients have many of the same questions. This is the second installment in a series of blog entries discussing some of the more common ones.

Will I have to do some sort of credit counseling? What is it? Is it hard?

Yes, everyone who files bankruptcy must complete a simple credit counseling program.  But don’t worry, it doesn’t take long to complete and it is not challenging.

In 2005, congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act, a law requiring all debtors in bankruptcy to complete two credit counseling courses. The first course must be completed prior to the filing of your case and the second course must be completed prior to the granting of your discharge order (i.e. completion of your case). These courses will require that you input general information regarding your income, budget, and debts. There are several companies that offer these courses and the cost varies from as low as $5.00/per person to approximately $50.00. Upon completion of these courses you will receive a Certificate that should be brought to your Attorney in order to be filed with your case. Our office can provide you with contact information for several providers of credit counseling courses at your free initial consultation. Click Here to Schedule

The first course typically lasts anywhere from one half hour to one hour depending an individual debtor’s answers to the questions. The second course typically lasts somewhat longer. Additionally, the second course is sometimes completed through the Interim Trustee’s office should you be involved in a Chapter 13 bankruptcy. Neither course is difficult but often they can and do provide useful tips on budgeting, savings, and methods to succeed financially post bankruptcy filing. Also, if you are doing a joint filing (where spouses file together) many of the courses will allow you to participate jointly, instead of each person having to take the course separately. Both of these courses are additional expenses that are not typically included in your bankruptcy fee.

We hope you find the foregoing useful and that you choose to schedule a consultation today. Contact Info We have four offices:  DAYTON (at the 75 South / 725 Interchange);WEST CHESTER (on Route 747 near the Union Center exit on Route 75); and Cincinnati (HYDE PARK and EASTGATE).  We would be glad to meet with you at a convenient time, including evenings and weekends.