There are many things to do before you file for bankruptcy, but one step you absolutely cannot skip is your credit counseling course. This is a requirement for any individual filing for bankruptcy, whether you are choosing to file Chapter 7 or Chapter 13. A Montgomery County bankruptcy lawyer can tell you more about this requirement and anything else you need to do before the bankruptcy process really begins.

When Do I Have to Take Credit Counseling?

You must take a credit counseling course sometime in the 180 days before you start the bankruptcy process. This course can be completed online or over the phone and it usually takes around an hour or two to complete. If you need to find an approved provider, the court can help you do that.

Once you have finished this class, you will be given a certificate of completion. This is filed with the rest of your paperwork when you get the bankruptcy process started.

What’s Covered In Credit Counseling?

This course is meant to cover a lot of topics that can help you better manage your money and avoid the bankruptcy process in the future. The courts don’t want people just filing for bankruptcy over and over again. Credit counseling is supposed to make it less likely that you’ll have to file again because it teaches you about:

  • Budgeting
  • The importance of the debt-to-income ration
  • Consumer laws that can protect you
  • How you can protect yourself from identity theft
  • Alternatives to bankruptcy, like debt consolidation and debt management programs
  • How it’s possible to rebuild your credit after a bankruptcy filing

Keep in mind that you cannot skip this course. If you do, your debts won’t get discharged. Instead, your case will just be outright dismissed. You will still be responsible for all of that money you owe.

Is This the Same as Debtor Education?

It’s also important to note that credit counseling and debtor education are not the same thing. Debtor education is another class that bankruptcy filers have to take, but this course must be completed sometime after filing for bankruptcy but before any debts can be discharged.

Debtor education is mostly meant to teach you how to manage your money and how to repair your credit. This course is also meant to help you avoid filing for bankruptcy again. Getting your debts discharged and getting a fresh financial start is only possible when you complete both of these courses.

Meet With Our Attorneys

So if you are ready to file for bankruptcy, make sure that you don’t make any costly mistakes. Contact Mudrick & Zucker to schedule a consultation and learn more about how our knowledgeable lawyers can help guide you through this process.