Mandatory Credit Counseling Before Bankruptcy

It is Mandatory to Receive Credit Counseling Before Bankruptcy

It is now mandatory for a debtor to receive credit counseling before they file bankruptcy. It is also required that they complete a mandatory education course on personal financial management to insure that they receive their discharge.

The Credit Counseling Requirement makes individuals ineligible for discharge under any chapter of the Bankruptcy Code unless they have received credit counseling from a nonprofit budget and credit counseling agency within 180 days prior to filing a bankruptcy. Either the U.S. Trustee or the bankruptcy administrator must approve of the counseling agency.

 This counseling can be provided individually or in a group setting and is offered in a variety of way including in person, over the phone or by Internet.