There are two parts to every bankruptcy that takes place in the United States, per the Bankruptcy code: an “entry” credit counseling to be completed prior to filing bankruptcy in Dayton, and an “exit” credit counseling to be completed prior to exiting bankruptcy. These two credit counseling session cannot be skipped, and are intended to brief an individual on personal financial management, in an attempt to make sure they need bankruptcy and if so, to make sure that they don’t return to the bankruptcy courts after the prescribed amount of time.
Looking closer at credit counseling in bankruptcy, there are numerous debt and credit counseling programs and classes that exist today. Many times an individual will attempt these before declaring bankruptcy. If you are feeling the strain of a bad financial situation and thinking of taking one of these courses, it is important that you look at the Federal Bankruptcy Court’s approved list of credit counseling providers to ensure you are taking a course that will qualify with the court system should you decide that bankruptcy is the correct course of action.
Again, the requirements in the bankruptcy code state that pre filing or entry credit counseling is an absolute mandatory before filing for bankruptcy. If you have already had a credit counseling course it must have been within 6 months of filing. There are also now ways of skipping the debtor education course needed before receiving your bankruptcy discharge where all your eligible debts are wiped clean. The purpose of these course is designed to make you a more savvy and competent consumer and manager of your personal and/or business finances. While some may feel that this is a waste of time, most individuals agree that there is much to be gained from sitting through these two courses.