Credit Counseling and the Bankruptcy Code
Revisions to the Bankruptcy Code became effective October 17, 2005. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 requires those planning to file bankruptcy to obtain, at their own expense, credit counseling services from an approved credit counseling agency in the six months immediately before filing bankruptcy. A certificate of completion obtained from the credit counseling service must be submitted with the bankruptcy petition.
The cost for the credit counseling varies -- from a low $20 to much higher. Some counseling agencies provide online counseling, meaning that one can complete the counseling requirement online and receive a certificate of completion by mail, and others require classroom attendance or personal sessions with a counselor..
Because of the demand for credit counseling services, more than 1.5 million people file bankruptcy every year, there are hundreds to choose from.
The federal government provides an online list of credit counseling agencies approved pursuant to 11 U.S.C., Section 111 "Approved Bankruptcy Counselors". The list of approved credit counseling agencies is always changing, with counseling services being added and deleted on a regular basis. To find a certified counseling agency in your state and area, visit the Department of Justice website. The link is
Related articles
Bankruptcy
