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Q.What is this new requirement that bankruptcy filers must attend Credit and Debt Counseling?
A.As of October 17, 2005, both before filing for bankruptcy and after the bankruptcy proceedings have transpired most applicants are required to attend credit and debt counseling and mandatory financial management education, respectively from a government approved program.In addition to the pre-bankruptcy credit counseling requirement, at the conclusion of bankruptcy proceedings, the bankruptcy petitioner must participate in a second government-approved financial management education program before the court will discharge the bankruptcy petitioner's debt. The U.S. Trustee Program from the U.S. Department of Justice provides a list of the government approved credit counseling programs.
As stated above, all prospective bankruptcy filers are required, before filing for bankruptcy, to participate in a credit counseling program, but they are NOT required to go along with any repayment plan proposed by the credit counseling agency. However, if the credit counseling agency does propose a repayment plan, the bankruptcy filer will have to submit the proposed plan to the court, along with the certificate showing completion of the required counseling.
In addition to the pre-bankruptcy filing credit counseling requirement, after a bankruptcy case has been completed the bankruptcy petitioner will again be required to attend another counseling session on personal financial management. The bankruptcy court will not discharge (wipe out) a bankruptcy filer's debts until the bankruptcy petitioner submits proof to the court that she or he has fulfilled this requirement. You can a list of approved post-bankruptcy counseling programs is also available from theU.S. Trustee Program.
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