The Pre-bankruptcy Credit Counseling Course

Credit Counseling Sign

Credit Counseling Sign (Photo credit: Steve Rhode)

United States federal bankruptcy law now requires those who file for bankruptcy protection to take a pre-bankruptcy credit counseling course. The course includes counseling on how to use credit and was established by the 2005 bankruptcy law changes under the Bankruptcy Abuse and Consumer Protection Act.

Credit Counseling Course Certification a Little Diverse

Federal bankruptcy laws normally work in conjunction with state bankruptcy laws. All but two states, Alabama and North Carolina, allows the US Trustee Program to establish the parameters on which the credit counseling course is conducted and certified.

In the states using the US Trustee Program credit counseling course certification, only the counselors who appear on the US Trustee Program list of approved credit counselors will be accepted as counselors satisfying the bankruptcy law. Only those certified counselors can legally advertise they are approved to certify a person or persons who want to file for bankruptcy protection. Although the content is the same, the cost of getting a credit counseling course certification is a little diverse.

Alabama and North Carolina use Bankruptcy Administrators to approve the pre-bankruptcy credit counseling course. Again, diversity with these two states in costs for the certification can apply.

Credit Counseling Course Qualifications

Not to be confused with the debtor education course required by federal bankruptcy law to be taken after a filer files, the pre-bankruptcy credit counseling course must be taken before you file for bankruptcy protection. You must supply to the bankruptcy court a certificate of certification that you successfully completed an approved credit counseling course when you file your application with the bankruptcy clerk.

Depending on the bankruptcy district in which you file, the certificate can be electronically submitted or a copy of the certificate must be filed with the application. In any regards, the certifications are produced through a central automated system that numbers them.

Potential Free Credit Counseling Course

Everyone understands that when you file for bankruptcy protection, you basically are having a hard time making financial ends meet. That means some of you may be having a hard time even paying for the fees required to file for bankruptcy protection. Here is some good news.

There is a credit counseling course company that has been started by a former bankruptcy judge and bankruptcy lawyers that basically, offers a free credit counseling course service for those of you still struggling financially. Their credit counseling course has been accepted in 47 states, and you can take the course online. There is a $5 expense fee you might be charged if you want a copy of the certification completion, but even that expense can be waved “based on your income level.” The link to that online website is:

Choosing a Bankruptcy Attorney

If you are considering filing for bankruptcy protection, it is wise to understand how complicated bankruptcy laws can be, and it equally wise to consider hiring a bankruptcy attorney to help you with your filing. Allow us to help you find your bankruptcy attorney.

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