Are you someone who is about to file bankruptcy? If you’ve not been able to manage your debts and you’ve chosen the last resort as an option to start afresh, you require going through the process of credit counseling so that you can easily file a certificate with the court along with the petition of bankruptcy. Most consumers need to pay a credit counseling fee in order to complete this process but there is a website called consumerbankruuptcycounseling.info through which you can get counseling free of cost. Read on the concerns of this article in order to know more on pre-bankruptcy counseling.
Is this a process of making bankruptcy accessible to the hapless debtors?
Yes, there have been reports that there are too many debtors who have been literally forced to file bankruptcy in spite of going through a financial state that could easily be rejuvenated through the other debt relief options. The Department of Justice’s US Trustee Program approves certain firms and allows them to offer credit counselor and education to the debtors before they take the plunge. Only those particular counselors who appear on the list of the US Trustee Program are able to provide counseling to the distressed debtors.
The requirements for credit counseling and debtor education
Both pre-discharge debtor education and pre-bankruptcy credit counseling might not be offered at the same time as credit counseling usually offers just before you file for bankruptcy. Debtor education is something that takes place after you file bankruptcy and this will teach you facts about bankruptcy. When you file for bankruptcy, you should file a certificate that will prove that you have completed the credit counseling session as this will be an evidence to the court. In order to protect yourself against any kind of fraud, you should ensure that the certificates are numbers and they’re even produced through an automated system.
Pre-bankruptcy counseling – What does this entail?
Before you file bankruptcy, the credit counselor will evaluate your present financial condition, discuss all the other alternatives to bankruptcy that you could have chosen in order to restore your financial state. He will also devise you a budget plan. A typical counseling session with the expert credit counselor should last for at least 60-90 minutes and this can take place either in person, or on the phone or even online. For all those debtors who can’t afford to pay off the fees, credit counseling is offered free of cost, or else you might be charged for going through this session, which is usually $50. Once you complete credit counseling, you need a proof. You can log into the US Trustee’s website in order to be sure that you receive the certificate from the mentioned organization. The credit counseling organizations aren’t supposed to file an extra charge for the certificate.
So, before you take the plunge into the bankruptcy bandwagon, ensure going through the discussions before filing for insolvency in order to be sure whether or not this is the best option for your present financial state. Take informed decisions about your finances and take immediate steps to start rebuilding your credit after going through bankruptcy so as to become creditworthy yet again.