Pre-Bankruptcy Credit Counseling
A crucial step to become eligible for personal bankruptcy.
Deciding to declare bankruptcy is a big decision. It can help you get the clean break from your debt, so you can regain financial stability. At the same time, it will also have a significant impact on your credit and, possibly, your assets. Pre-bankruptcy credit counseling helps ensure you’re ready to file.
Please note that due to CDC recommended social distancing guidelines, pre-bankruptcy counseling appointments may be limited. Please call (800) 899-7440 for more information.
What is pre-bankruptcy credit counseling?
The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) established two key requirements for anyone who wants to file bankruptcy.
First, you must complete pre-bankruptcy credit counseling before you file. You receive a Credit Counseling Certificate that’s required to file with the courts.
You will also be required to take a debtor education course after you file. The Debtor Education Certificate is required to receive the final discharge of your debts.
Why is credit counseling required for bankruptcy?
Pre-bankruptcy credit counseling is here to help ensure you fully understand the bankruptcy process. It also helps you affirm you’ve considered all your other available options first. You’ll know you’re making the best choice for your circumstances and you’ll know what to expect.
How pre-bankruptcy credit counseling works
- Call (800) 899-7440 to schedule an appointment. Consolidated Credit conducts pre-bankruptcy counseling in person. When you call, you can schedule your session and discuss fees with a certified counselor. Please note that due to CDC-recommended guidelines, pre-bankruptcy counseling appointments may be limited at this time.
- Meet with your counselor to complete the course in either English or Spanish. It takes about 60-90 minutes to complete. During that time, you’ll answer questions about:
- your financial situation
- the filing you want to complete
- what steps you’ve taken to prepare
- Work one-on-one with your counselor to create a customized action plan. By the end of the session, you’ll be fully informed on the process and what you need to do to achieve stability.
- Once you complete the session, you’ll receive the Certificate of Credit Counseling that you will need to file. The certificate can be delivered to you, as well as a bankruptcy attorney.
Financial information you need to complete counseling
- Tax deductions