Debtor Education and Credit Counseling

Bankruptcy can be a good option for people who have difficulty meeting their financial obligations. Whether you choose to file under Chapter 7 liquidation or Chapter 13 reorganization the bankruptcy court requires that you participate in pre-bankruptcy credit counseling and pre-discharge debtor education. The counselors in both sessions should review your entire financial situation in order to help you develop a personalized strategy to resolve your money difficulties now and avoid having them in the future.

Pre-filing credit counseling

In Pennsylvania, you must attach to your bankruptcy petition a certificate stating that within 180 days of filing you completed an approved credit counseling session.  The consultation usually takes between 60 and 90 minutes and can be completed in person, online or over the phone. It is important that you investigate the different approved counselors to find one that will best meet your needs. The counselors charge a fee however; you can request a fee waiver, if you cannot afford to pay. During the session, your counselor will discuss your budget and suggest alternatives to filing bankruptcy. The goal is to verify that bankruptcy is the best solution for your financial situation. In addition, your counselor may produce a repayment plan that keeps you out of bankruptcy. You are not required to accept this plan.

Pre-discharge debtor education

Before the bankruptcy court discharges your debts in either a Chapter 7 or Chapter 13 case, you must provide a certificate of completion of a debtor education course. This course can last about two hours and, like the pre-filing counseling session, you can complete the course in person, online or over the phone.  The goal of this course is to assist you in creating your after-bankruptcy budget, discovering ways to better manage your finances and learning to use credit more wisely.

Although counselors in both required sessions must meet the approval of the US trustee program, it is a good idea to Contact Harold Shepley & Associates, LLC for advice on your credit counseling and debtor education.  The only thing you have to lose is your debt.

By Harold Shepley | Published August 13, 2013 | Posted in Bankruptcy | Tagged chapter 13, chapter 7, Pennsylvania bankruptcy attorney | Leave a comment