Before you can file for Chapter 7 or Chapter 13 bankruptcy, you must consult a nonprofit credit counseling agency.
Before you can file for Chapter 7 or Chapter 13 bankruptcy, you must consult a nonprofit credit counseling agency. The purpose of this consultation is to see whether there is a feasible way to handle your debt load outside of bankruptcy, without adding to what you owe. Bankruptcy law requires only that you participate in the counseling—not that you go along with whatever the agency proposes. Credit counseling came into law in 2005.
The first class takes about 1 ½ hours and they will ask budget questions. The second class, Debtor Education, is required after your case is filed in order for our client(s) to obtain a discharge. This class takes 2 hours to complete.