Financial Resource

As per the new federal rules, before you file for bankruptcy it is mandatory to get credit counseling for bankruptcy. You are required to file a certificate of credit counseling completion when you file for bankruptcy. You are also required to file evidence of debtor education after you file for bankruptcy. This has to be done before your debts are discharged. The certificates are generated through a central automated system to protect against any fraud.

A pre-bankruptcy session of counseling must be done through an approved credit counseling organization. It usually involves an evaluation of the personal financial situation of the affected individual, discussing available alternatives to bankruptcy and formulating a personal budget plan. A typical credit counseling for bankruptcy session lasts for about 60 to 90 minutes. It can take place in person, on the phone or online depending on your convenience.

The organization is required to provide the counseling free of charge for those who cannot afford to pay the counseling fees. Otherwise a fee of around is charged depending on your location and the type of services you receive. In any case, you have the right to know the charges and all other expenses associated with the credit counseling for bankruptcy session before the counseling actually starts. The certificate provided as a proof of having undergone credit counseling is not charged extra.

It is advisable to do some research while choosing a credit counseling organization. Once you have the short list of approved organizations, there are a few areas that you should focus on such as the services offered, their ability to develop a plan to help you find alternatives, their fees, your affordability to pay the fees and the qualification of the counselors.

The U.S Trustee Program is the one that oversees the credit counseling sessions. They ensure that the integrity and the efficiency of the system are maintained by proper enforcement of the laws and maintaining excellence in operations. Student loan bankruptcy is a relatively simple process which can be done professionally with the help of experts in the field.You have the option to register your complaints if you feel that the counseling services provided is not adequate. All you have to do is provide the U.S Trustee Program with all the relevant details and your concerns will be addressed to your satisfaction.

Credit counseling for bankruptcy is an integral part of any pre-bankruptcy filing process. You have to make sure that you are ready with all the relevant details to make the process smooth and easy.

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