There’s a lot of work that goes into filing for bankruptcy. You even have to take a class before you can have your debts discharged! This credit counseling course is mandatory, but it can actually end up being a good use of your time. A New City bankruptcy attorney from our firm can tell you more about this and all of the requirements to file.
What is Credit Counseling?
Credit counseling is a required course that must be completed by phone or online. The court can link you to legitimate providers. The course lasts around an hour to two hours and you’ll be given a certificate of completion once you are done.
This course covers a few important topics, including:
- Alternatives to bankruptcy, like debt consolidation
- How you can protect your identity
- How debts work
- The importance of a debt-to-income ratio
- How to create a budget and manage expenses
- Rebuilding credit post-bankruptcy
The credit counseling course is designed to teach you about managing your finances and what you can do to avoid similar troubles in the future. You have made some mistakes, but now you can learn from them.
Why Do I Need Credit Counseling?
The courts don’t want people to just file for bankruptcy over and over again. If you have to file, it’s assumed that this is an extraordinary situation. A credit counseling course is meant to teach you more effective ways to manage money in the future and make it less likely that you’ll ever have to file again.
This course and the debtor education course you are required to take before having your debts discharged can teach you some valuable lessons. It will take a while, but take what you’ve been taught to heart and you can rebuild your credit over time. These classes can help you lay a solid foundation and take full advantage of this fresh financial start.
What Happens If I Don’t Take the Course?
You cannot file for bankruptcy and skip your credit counseling course. The certificate of completion for this course is supposed to be filed with the rest of your paperwork soon after starting the bankruptcy process. If you decide that you won’t go to this class and complete it, the court is going to dismiss your case. A “dismissal” does nothing about your debt. What you want is a “discharge” of your debts, but you won’t get it if you don’t go to credit counseling.
Contact Our Bankruptcy Lawyers
If you are thinking about filing for bankruptcy, contact the Lauterbach Law Firm. We can answer any questions about credit counseling, getting your debts discharged, and how an experienced attorney can help you go through this process.
