The Credit Counseling Briefing - Your "Ticket In" to the Bankruptcy Process
Before filing for bankruptcy protection, you'll be required to complete a pre-filing Credit Counseling Briefing with an agency approved by the U.S. Trustee's office. This requirement is critical! Since the bankruptcy law changes took effect in October of 2005, many consumer bankruptcy cases have been dismissed for failure to timely file the credit counseling certification. Bankruptcy court judges have very little discretion to waive or extend time to comply with this requirement. The course must be completed before you file your bankruptcy petition.
The Credit Counseling Briefing may be completed in person, over the telephone, or via the Internet. The session should include an evaluation of your personal finances, discussion of any possible alternatives to bankruptcy, and a personal budget plan.
Upon completion of the course, you must get a certificate to prove that you've completed the course.
Where Can I Find an Approved Credit Counseling Agency?
You can find an affordable, interactive, online credit counseling briefing at www.startfreshtoday.com. For other approved courses, check the U.S. Trustee's list at www.usdoj.gov/ust/eo/bapcpa/ccde/cc_approved.htm.
How Much Does Credit Counseling Cost?
The cost may vary depending upon where you live and which type of session you schedule. The U.S. Trustee's office indicates that you can expect to pay about $50 for the average Credit Counseling Briefing. The Start Fresh Today Credit Counseling Briefing currently costs $30.
An approved agency is required to disclose fees to you before starting the session, and cannot charge an extra fee for the required certificate.
When Should I Complete my Credit Counseling Briefing?
Your must complete the credit counseling requirement within the six month period before you file your bankruptcy petition.
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What Do I Do with the Credit Counseling Certificate?
Your bankruptcy attorney will file your credit counseling certificate along with your bankruptcy petition, to show that court that you have complied with the pre-filing requirement.
Are there Any Exceptions to the Credit Counseling Requirement?
There are some very limited exceptions to the credit counseling requirement, but they are strictly prescribed by statute. Judges have little or no authority to waive the credit counseling requirement. If there is some reason that you think you may not be able to complete the credit counseling requirement, speak with your bankruptcy attorney far in advance of your planned filing date to see whether or not you might fall under an exception and what documentation might be required.
Is this Different From the "Debtor Education" Course?
Yes, the Credit Counseling Briefing and the Debtor Education Course are two completely separate programs with separate certificates. They are both required to successfully petition for bankruptcy protection and receive a discharge. The Credit Counseling Briefing must take place before you file for bankruptcy, while you must complete the Debtor Education Course after filing, but before discharge.