One of the major changes that spurred a large influx of bankruptcy filings was the changes made to require each bankruptcy filer to complete credit counseling sessions with the a certified/licensed bankruptcy credit counseling organization. There are many potential filers who are very concerned about the bankruptcy credit counseling. The purpose of this article is to dispel common myths about bankruptcy credit counseling and to inform you of what it exactly entails.
In October of 2005, a major bankruptcy process reform was instated. The most concerning part of the reform to the general public was the requirement to complete a credit counseling session which was not previously required for bankruptcy filers. If you have not looked into a bankruptcy credit counseling session, but are concerned about it, we have good news for you. It is very easy and does not require much of a time commitment to complete.
Today all bankruptcy credit counseling can be completed online. You do not need to attend a class in person and relive your school days or add to your already busy schedule. There are two credit counseling sessions to complete. The first one is required to complete previous to your bankruptcy filing unless you are filing an emergency bankruptcy. In the case of an emergency bankruptcy, you can complete the first credit counseling course and submit your certificate of completion two weeks after the petition is filed. Your bankruptcy attorney can submit the certificate of completion for you. In a traditional bankruptcy, the certificate of completion for credit counseling is submitted with the filing of the petition by your bankruptcy attorney. There is a second credit counseling session that is required to be completed after the petition has been filed. This second session is more of a guide to your transition into life after bankruptcy.
One important thing to know about the credit counseling sessions is that it is not a test of your eligibility to file for bankruptcy. Credit counseling sessions are independent of your bankruptcy petition information. None of the information on the credit counseling is forwarded to the bankruptcy petition or bankruptcy court. Credit counseling sessions are not a test. It is a self-evaluation. You won’t have to be tested of your knowledge or of your eligibility to file for bankruptcy. It is simply an exercise to complete.
How much does it cost? You can expect the cost of online bankruptcy credit counseling to be around $10 per session. You should not expect a $50 fee for an online course that takes about an hour to complete. Make sure you are not getting ripped off for credit counseling. Bankruptcy Law Professionals has always guided clients towards credit counseling that is inexpensive and your attorney should be able to do the same.
Bankruptcy Law Professionals is a bankruptcy law firm based in Southern California with offices in Orange County and Riverside to serve all of Southern California. Contact us at 855 257-7671 for a consultation with our attorneys.