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Credit Counseling: The First Step toward Bankruptcy Filing

Credit Counseling: The First Step toward Bankruptcy Filing

: Richard West Law Office

your creditCredit counseling is a required part of any bankruptcy filing procedure; in it, consumers are guided and educated about their current debt situation and how to best manage their credit now and in the future. A Cincinnati bankruptcy attorney must recommend credit counseling as a first step to filing for Chapter 7 or Chapter 13 bankruptcy.

A Bankruptcy Attorney Will Help

A bankruptcy attorney will help you get your certificate of completion for credit counseling so that you can move forward with your Chapter 7 or Chapter 13 filing. The cost of the certificate is generally about $50. The certificate is used by the attorney to show that you have completed the required counseling. A credit counseling firm is required by law to disclose all fees to the consumer up front, before counseling; the firm is also required to provide free counseling to those who cannot afford the service.

You must also undergo a second credit counseling session before your bankruptcy is discharged, in order to make sure you have the financial knowledge and wherewithal to get back on track with a fresh financial start. You will receive a certificate of completion for this session, as well, which the attorney will provide to the court.

Nonetheless, there are many credit counseling scams out there, and many companies that will take your money and leave you in no better shape than before, or even worse. Your counseling provider must be approved by the bankruptcy court, as well, so choosing your own can be a foolish prospect in any event. Be sure to ask your attorney to recommend a quality credit counseling service to avoid any missteps.