What is a Credit Counseling Course?

Bankruptcy is not an easy process. While the process can sometimes be expedited, it does not happen overnight. There are requirements involved, and one of them is a credit counseling course.

You may wonder what exactly this entails and what the purpose of it is. Credit counseling must be taken before you file for bankruptcy. Then you must take a debtor education course once the bankruptcy process ends. These two courses cannot be taken at the same time.

You will receive a certificate upon completion of the course. Only credit counseling organizations that have been approved by the U.S. Trustee Program are allowed to issue these certificates. You can find an approved credit counseling agency here.

The first course focuses on bankruptcy and alternatives to bankruptcy, while the second provides information on managing personal finances. These credit counseling courses equip consumers with the skills and resources they need to get their finances back on track and avoid future bankruptcy.

How to Get Your Certificates

When you complete the courses, you will receive your required certificates. The first course is a pre-bankruptcy counseling session lasting 60-90 minutes. This course will help you determine if filing for bankruptcy is the best option for you by discussing bankruptcy and other debt-relief options. The course also analyzes your income and debt to see if you should file.

The cost is usually around $50, but it’s free in cases of financial hardship. Complete the course, and you will receive a credit counseling certificate, which is valid for six months.

The second credit counseling certificate is granted after the bankruptcy has been finalized and you have completed a debtor education course. This course must be at least two hours long. Topics included in this course include how to manage money, how to develop a budget, and how to use credit responsibly.

The cost is around $50-$100, with waivers available for those unable to afford the fee. For Chapter 7 cases, the course must be completed within 45 days after the creditors meeting. For Chapter 13 cases, the course must be completed either by the date of your last payment in the repayment plan or the date of the filing for the Motion for a Discharge.

Contact Our West Palm Beach Bankruptcy Attorney Today

Credit counseling courses are required for those who intend to file for bankruptcy. These informative courses give consumers the financial skills they need to avoid future bankruptcy.

Bankruptcy is a huge decision. When you are ready to file, get the help you need from West Palm Beach bankruptcy attorney Brian K. McMahon, P.A. We will walk you through the process from start to finish. Schedule a consultation today by filling out the online form or calling (561) 658-1789. We serve the West Palm Beach, Boca Raton, Port St. Lucie, and South Florida areas.