Bymaster

Pre-Bankruptcy Credit Counseling – The Top Five Things to Know

Pre-Bankruptcy Credit Counseling – Every debtor is now required to take a bankruptcy credit counseling course before they file a Chapter 7 or Chapter 13 bankruptcy case. This pre-bankruptcy credit counseling course can be taken through several different course providers. This article is about the top five things to know about this course.

Number One: The pre-bankruptcy credit counseling course is usually very affordable. The pre-bankruptcy credit counseling course is usually only a cost of $10 to $20 at this time for an affordable and reliable course provider. When the original requirement for the pre-bankruptcy course was put into effect in October 2005, courses usually ranged anywhere from $50-$75. Over time as the course became more clear and more providers got involved, the cost gradually declined until now when the approximate cost is usually $10-$20 per bankruptcy per course provider. If you are paying more than $10-$20 for this pre-bankruptcy course now, you may be paying too much and could possibly find more affordable options.

In certain situations, the pre-bankruptcy credit counseling course can even be obtained for free or reduced charge. This is because the bankruptcy code requires all providers to provide the course either free or at a reduced charge to people who do not have the means financially to take the course.

Number Two: The pre-bankruptcy credit counseling course usually only takes one hour to complete. Unlike other more intensive courses provided for various legal settings, the pre-bankruptcy credit counseling course only takes one hour to complete. You may spend more than one hour working on the course if you choose, but you are required by the federal law to spend at least one hour in completing the course.

Number Three: The pre-bankruptcy credit counseling course goes over alternative options to bankruptcy such as repaying your debts. The content of the pre-bankruptcy credit counseling course is a repayment plan or other method that may be available to repay your debts. This repayment plan (or other viable information that can help you avoid bankruptcy) is not very useful to many people who already thoughtfully have considered whether they should file for bankruptcy. However, in some situations it may be an advantage to the debtor to know that it is their best option to file bankruptcy.

Number Four: The pre-bankruptcy credit counseling course can be taken easily either through the Internet or on the phone.  Because of opposition in Congress, the requirements for taking the pre-bankruptcy credit counseling course are not very difficult. Congress decided that it is necessary to allow people to take the class quickly either through the Internet or through the phone to make it less of a burden for those seeking to file bankruptcy. Therefore, if necessary, it can be very easy to obtain the pre-bankruptcy credit counseling course certificate either by contacting an institution that will do it right away over the phone or by doing it immediately through the Internet.

Number Five: The pre-bankruptcy credit counseling course must be taken before the bankruptcy case is filed. There are absolutely no exceptions except for some very limited situations. It is extremely important to note that all debtors must take the pre-bankruptcy credit counseling course before they file for bankruptcy. Any person who is an individual (such as a person, not a business) must take the course before the bankruptcy case is filed or their case will be shortly dismissed thereafter.

There are only very limited exceptions to those who are not required to take the pre-bankruptcy credit counseling course. The first exception is for incapacity: a person who does not have the mental capacity to take or understand the course. You will be required to provide detailed medical information and file a motion to have the credit counseling requirement waived for incapacity.

A second less common exception is for those in active military service who do not have the ability to take the course. It is advisable that even people on active military duty should still take the course but may be able to avoid if taking the course is absolutely impossible.

Take the pre-bankruptcy credit counseling course. It will not be a burden to you. If you are seriously considering filing bankruptcy, do not let the pre-bankruptcy credit counseling course deter you from filing bankruptcy. The pre-bankruptcy credit counseling course is very easy to complete and very affordable: if you need help taking the course you can contact our office and we will send you to a provider who is reliable and affordable so that you can prepare to file Chapter 7 or Chapter 13 bankruptcy.

-Indianapolis Bankruptcy Attorney John F. Bymaster