Many are nervous about entering the bankruptcy process with all of the outstanding requirements that are written about online. Our offices in Orange County and Riverside CA have met with thousands of clients who found it challenging to track down all the requirements involved in filing for bankruptcy. Many people feel overwhelmed by what they read online about bankruptcy. The bankruptcy process should not be difficult to manage if you hire the right law office to help you. Your law office should be able to simplify the process and take care of all of the major aspects of the bankruptcy filing for you. One of the most asked about requirements to file for bankruptcy is the credit counseling sessions that are required by the bankruptcy court. There are 2 sessions which are required to complete through the bankruptcy process. In this post, we will accurately describe what you can expect from these credit counseling sessions.
In the bankruptcy code reform of 2005, the bankruptcy court decided to include credit counseling as a part of the bankruptcy process. The bankruptcy process before then, did not require a completion of any type of counseling outside of the bankruptcy trustee meeting and the interaction with your attorney. Since the changes were made to the bankruptcy code in 2005, all consumer bankruptcy filings will require the completion of 2 credit counseling sessions. Initially, this change in bankruptcy code created a huge rush in bankruptcy filings during 2005 because people wanted to avoid the new requirement for credit counseling. This was not the only change made to the bankruptcy code, but it was one of the major changes. When the change was first made, credit counseling companies created classroom environments for people to take the credit counseling courses in. It usually included an hour or more of classroom instruction and learning about your credit situation and how you got into that situation, and how you can keep out of it in the future. The purpose of credit counseling is to allow you to explore your past situation that lead to bankruptcy and allow you to explore what the major factors were in contributing to an unhealthy credit record.
As mentioned previously, there are 2 separate credit counseling sessions that are required to be completed in a consumer bankruptcy situation. The first is called Consumer Credit Counseling. Consumer Credit Counseling is required to complete before your petition if filed. So, you need a certificate of completion to include at the time of your filing unless there is an emergency that will not allow time for you to complete the credit counseling. Consumer Credit Counseling allows you to put all your financial information on the table for a credit counselor to review. After your information is collected by the credit counselor, the counselor will review your information and provide you with feedback on how your financial situation is out of balance and see what you need to normalize in order to avoid the same bankrupt situation again in the future. After review of your finances, the credit counselor will provide you with a certificate of completion to prove your participation in the credit counseling. This certificate is what needs to be submitted and filed with the bankruptcy court.
The second credit counseling requirement is called Debtor Education. Debtor Education is to be completed after the bankruptcy petition has been filed in court. The Debtor Education certificate of completion needs to be filed in your bankruptcy case before the case reaches discharge. Debtor Education is more of an information session to provide to the debtor about how to manage debt in the future. The difference between Debtor Education and Consumer Credit Counseling is that the Debtor Education is focused less on your specific financial information and more on general consumer debt management matters. These Debtor Education sessions began in a classroom setting when it was first implemented.
So, how do you complete these requirements today? Bankruptcy Law Professionals will guide you through the simplest processes to get your certificates of completion for both Credit Counseling and Debtor Education. We keep updated on the latest service providers on the market for these certificates on a daily basis. Today, we can offer these courses completely online or by phone with certified providers. You will never need to attend a classroom environment. You can complete both courses from home and receive your certificates of completion electronically or by mail. The cost of the credit counseling sessions is outside of our bankruptcy service, but it should not be anymore than $20 TOTAL. There are many firms out there claiming the cost to be $50 or $100 for each of the sessions, but there is no need to pay this amount. Make sure you do your research and know what you are getting. Bankruptcy Law Professionals will provide you with guidance for these services that have been proven effective by thousands of our clients in the past.
Our offices in Orange County and Riverside are available to help you with your bankruptcy situation today. Contact our Orange County bankruptcy attorneys or Riverside bankruptcy attorneys from Bankruptcy Law Professionals at (855) 257-7671. We look forward to working with you.