And Personal Bankruptcy
A Necessary Part of the Bankruptcy Process
Bankruptcy is designed to help people eliminate their debts and get a fresh financial start. As a part of the personal bankruptcy process, filing parties are required to undergo debt counseling prior to filing once they finish their Chapter 7 or Chapter 13 bankruptcy proceedings. While this may seem like a tedious and unappealing aspect of the bankruptcy process, at The Cook Law Firm, we can assure you that debt counseling is not only an essential, but also a beneficial aspect of the bankruptcy process.
Join us as we explain the different debt counseling services associated with personal bankruptcy and what you can expect from each.
Must Take Place Before Filing
Determines If You’re Eligible for Bankruptcy
Teaches You Financial Literacy Skills
Works to Prevent Debt in the Future
What Is Debt Counseling?
As we’ve mentioned above, you’ll need to undergo debt counseling prior to filing and after completing the bulk of the personal bankruptcy process you’re utilizing. While this may seem redundant, these two debt counseling sessions serve different purposes. The former’s being to determine whether you’re a good candidate for bankruptcy, and the latter being to educate you prior to finalizing your completion of the bankruptcy process.
Pre-Filing Debt Counseling
In most cases, you’ll need to present a certificate that authenticates your participation in a debt counseling course before your bankruptcy case can be filed with the court. Basically, this debt counseling session is in place to determine if bankruptcy is the right decision for your financial situation.
With a certified counselor, you’ll discuss your debts and financial situation as a whole, and discuss any possible alternatives you could utilize outside of bankruptcy. These sessions can be done in a variety of ways — in person, online, or over the phone. On average, these sessions last between 60 and 90 minutes.
If bankruptcy is deemed appropriate considering your financial situation, you’ll receive a certificate of completion that you will file with the bankruptcy court.
Interested in learning more about bankruptcy and debt counseling?
Post-Bankruptcy Debt Counseling
Once you’ve filed for Chapter 7 or Chapter 13 personal bankruptcy, you’ll undergo the applicable bankruptcy process. Once you complete the requirements of your chapter of bankruptcy, the final step before finalizing your case is to undergo the post-bankruptcy debt counseling session.
This iteration of debt counseling is a one time event that serves to provide you the tools and knowledge you need to have financial literacy. While the actual bankruptcy process serves to eliminate debts and help you get back on your feet, the overarching experience also requires that you learn from financial mistakes to prevent them from happening again in the future.
Some of the topics covered in the exit debt counseling session include managing credit, your money, and a budget, among other things. This session is longer, lasting around two hours, but we recommend looking forward to this session and getting all you can from it.
Not only is this the last step before officially having any remaining debts eliminated and ending the bankruptcy process, but it’s also an opportunity to soak in and then implement some life changing financial knowledge! Like the pre-filing debt counseling, upon completion of your post-process session, you’ll get a certificate of completion.
The Cook Law Firm
At The Cook Law Firm, we have an intimate understanding of every aspect of the different bankruptcy processes — from debt counseling, to filing cases with the bankruptcy court, advocating client interests, and so much more.
Due to this, we’re a leading bankruptcy law firm in Louisiana, and we’re eager to help you. From helping you determine if bankruptcy is right for you and if you qualify to working with you through the entire process, we are equipped with the attorneys, experience, and knowledge to efficiently and effectively get you through the bankruptcy process.
Looking to learn more about bankruptcy? We’re here to help.
We’re Here to Help
We hope this information helps you understand a bit more about how bankruptcy works. There are plenty of reasons to file for bankruptcy, and we hope that if any of these reasons are applicable to you, you’ll reach out to us for a consultation. And if you’re ready to get started with bankruptcy, make sure you have experienced attorneys with the experience and skills to help you.