Debt Counseling And Personal Bankruptcy
Debt counseling is 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 finishing 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.
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.