Pre Bankruptcy Credit Counseling: A Step That Must Be Fulfilled
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In 2005, bankruptcy laws underwent a major overhaul. One of the changes put into effect was a requirement for all people planning on filing bankruptcy to complete a pre bankruptcy credit counseling program. And not just any program; in fact, it must be a federal government approved pre bankruptcy credit counseling program.
You must actually obtain a certificate that you have successfully completed a pre bankruptcy credit counseling program and file it with the court. This step has to be taken before you file for bankruptcy.
If anyone is thinking of defrauding the court system by producing a fake certificate stating that they have completed pre bankruptcy credit counseling, they are out of luck. This is because there is a central automated electronic system that produces these certificates and the certificates all have a number that is specific.
You may be wondering what is covered in a credit counseling session. A pre bankruptcy credit counseling session is not unlike other credit counseling sessions. You will have a discussion with a credit counselor where you provide the counselor with your unique financial situation. The counselor will analyze your situation and then advise you of all of your options, including alternatives to bankruptcy. The counselor will also provide you with a personal debt plan. This counseling session can take up to 90 minutes.
Once you have finished your credit counseling session, you will need to ensure that you will receive a certificate that proves that you have successfully completed a pre bankruptcy credit counseling session. Be sure that you check out the agency that you use, before you use it, to make sure that it is an approved source for this type of service.
If you cannot avoid extra fees that may be charged for credit counseling services, which usually run around fifty dollars, you may want to avoid these fees by applying for a waiver. You will need to apply for this waiver of fees before you undertake the pre bankruptcy credit counseling services. Do not wait until after you have completed the counseling. If you do, it will likely be too late and you will end up being responsible for the fees.
You need to remember that ultimately, you will have to deal with any consequences that arise from the actions that you choose to take. Therefore, you need exercise due diligence in choosing a pre bankruptcy credit counseling agency. Whether you live in Cincinnati, Ohio, San Antonio, Texas, or somewhere in California, it is your responsibility to seek out the answers that you need in order to make an informed decision. The best source of support and information can definitely be found in a reputable attorney.
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