Debt Counseling Requirements
Federal law requires all individuals to complete debt counseling courses (two courses in total) from an approved provider in order to qualify for bankruptcy relief and obtain a discharge. Part of the reason behind this law is to encourage more people to file for Chapter 13 over Chapter 7 bankruptcy.
This requirement is not a big burden and can be done online.
Pre-Bankruptcy Credit Counseling (First Course)
A pre-bankruptcy counseling course is required before you can file for bankruptcy. The course will include an evaluation of your personal financial situation and a personal budget plan. The course should last about 60 to 90 minutes.
One approved provider is DebtorCC which offers the course for $19.95 per household. You can complete the online course here:
Pre-Discharge Debtor Education (Second Course)
A debtor education course is required in order to obtain an Order of Discharge from the bankruptcy court. The course will include information on developing a budget, managing money, and using credit wisely. The course should last about 60 to 120 minutes. One approved provider is DebtorEdu which offers the course for $14.95 per household.
You can complete the online course here:
Call our office or send us an email if you have any questions regarding completing the debt counseling courses.