4 Facts to Know about Credit Counseling for Bankruptcy

August 10, 2015

As people prepare to file for bankruptcy, one of the things they will need to do before filing the petition with the court will be to complete the credit counseling course. Below, we’ll point out some of the most important facts to know about the credit counseling requirement for bankruptcy.

Important Info about Credit Counseling for Bankruptcy

  1. Here is what you need to know about the credit counseling requirement for Colorado bankruptcy, a Colorado Springs bankruptcy lawyer explains.

    Here is what you need to know about the credit counseling requirement for Colorado bankruptcy, a Colorado Springs bankruptcy lawyer explains.

    Credit counseling has to be completed within 180 days prior to filing for bankruptcy – And proof of completion will need to be filed with the court within 15 days after the bankruptcy petition has been filed (if it wasn’t filed with the petition).

  2. Rarely, the court will allow people to complete credit counseling after filing a bankruptcy petition – Specifically, to get approval to complete this requirement after filing a bankruptcy petition, people will have to prove to the court that they tried to get credit counseling (from an approved agency) within 5 days of filing their bankruptcy petition and that there is an emergency necessitating that they file for bankruptcy as soon as possible. People should be aware that the court will determine what qualifies as an emergency and that military deployment/mental incapacity can qualify for waivers of this requirement.
  3. The costs of credit counseling can vary – In fact, while credit counseling agencies are required to keep their costs “reasonable” (by order from the Office of the U.S. Trustee), the fees can be waived or reduced for those who are not able to pay for them. In general, however, the cost of credit counseling is roughly $50.
  4. Failing to complete credit counseling can result in a dismissal of a bankruptcy case – In other words, people who do not complete the credit counseling requirement and who do not qualify for an exemption/exception will not be able to discharge or resolve their debt via bankruptcy case. Additionally, when bankruptcy cases have been dismissed for failing to meeting this requirement, people will have to wait at least 180 days before they can file for bankruptcy again.

Contact the Colorado Springs Bankruptcy Lawyer at the Law Office of Jon B. Clarke, P.C.

Are you struggling with debt and ready for a financial fresh start? If so, it’s time to contact a trusted Colorado Springs bankruptcy lawyer at the Law Office of Jon B. Clarke, P.C. Our Colorado Springs bankruptcy attorneys bring more than 35 years of experience to our clients’ cases, making them effective at successfully resolving even the most complex bankruptcy cases on behalf of individuals and businesses alike.

To find out more about your best debt relief options, as well as how we can help you obtain the financial fresh start you need and deserve, contact us today by calling (303) 779-0600 or by emailing us using the contact form on this page. We also encourage you to complete our Business or Consumer Debtor Analysis Form so that we can provide you with professional advice that is as specific and helpful as possible.

From our offices based in Denver and Greenwood Village, we provide people throughout Colorado with the highest quality debt relief legal services.

Categories: Bankruptcy Planning