Filing for bankruptcy is a rather involved process, with plenty of work to do and paperwork to gather up before you can start things off. One requirement you definitely can’t forget about is your credit counseling course. Every filer has to go through this, so don’t try to find a way out of it. A Bergen County bankruptcy lawyer can tell you why this step is important.
When Do I Attend Credit Counseling?
You attend credit counseling before you submit the rest of your paperwork with your bankruptcy filing. Some people are annoyed by the requirement, but it really isn’t that hard to complete this course. The bankruptcy court can give you a list of approved providers and then you can complete the course by phone or online. Once you complete the course, you get a certificate that can be filed with the rest of your bankruptcy paperwork.
Why Do I Need a Credit Counseling Course?
The court does not want people filing for bankruptcy over and over again. These are supposed to be extreme circumstances. So credit counseling covers a variety of topics to teach you how to better manage your money and avoid having to file for bankruptcy again. Things a course should cover include:
- Budgeting
- How debts are structured
- The importance of your debt-to-income ratio
- Alternatives to bankruptcy, like debt consolidation
- How you can protect your identity
- What you can do to rebuild your credit after bankruptcy
- What kinds of laws protect you as a consumer
Will My Case Be Dismissed If I Don’t Go?
You cannot skip your credit counseling course. Everyone needs to go through it when they file for bankruptcy. Ignore the requirement and your bankruptcy case is dismissed. This means that your debts won’t be discharged. You’ll still be responsible for everything that you owe and your creditors will be able to come after you again. If you don’t want the work that you did to file for bankruptcy to be wasted, you need to complete your credit counseling class.
What’s the Difference Between Credit Counseling and Debtor Education?
Bankruptcy filers are also required to take a debtor education course. This is not the same as credit counseling, but some similar topics are covered. Debtor education focuses heavily on managing money and rebuilding after a bankruptcy filing. As with credit counseling, the goal here is to help filers avoid the mistakes that led to filing for bankruptcy in the first place.
Schedule Your Bankruptcy Consultation
If you have any questions about bankruptcy and its requirements, we’re here to answer them. Contact the Law Office of Boyd & Squitieri to schedule a consultation and learn more about how a lawyer can help you with the bankruptcy process.
