Bankruptcy Law Mandates Credit Counseling Before Filing and Debtor Education After Filing

People who file for bankruptcy are now required to first go through a credit counseling program before they file and debtor education after they file. You are not required to attend the credit counseling or debtor education in person; it can be done via the internet or telephone. Both programs have to be approved by the Department of Justice.

After the credit counseling and debtor education is complete the agency will issue a certificate of completion which you will need as part of your bankruptcy case.

Credit Counseling
The typical credit counseling lasts an hour and a half and costs around fifty dollars. During the counseling your expenses and income will analyzed. The credit counseling must take within the last six months before filing. A list of approved credit counseling programs can be found at the Department of Justice website.

Debtor Education
The typical debtor education lasts about two hours and costs around a hundred dollars. During the education you will learn about budgeting and using credit after bankruptcy. A list of approved debtor education courses can also be found at the Department of Justice website.