Share

Bankruptcy Law Blog

Friday, August 14, 2015

Five Things to Know About Consumer Bankruptcy Credit Counseling

Is credit counseling mandatory prior to entering bankruptcy proceedings?

In most cases, a debtor considering bankruptcy is required to work through credit counseling courses prior to even beginning the Chapter 7 or Chapter 13 process. If you are considering bankruptcy, the following tips may help you better prepare for this important preliminary step: 

Tip #5: Counseling required for all debts – Under bankruptcy regulations, credit counseling is required whether the debts are primarily business, personal, or an equal mix of both. Moreover, if a married couple is filing jointly, both spouses must go through counseling. 

Tip #4: Qualified counseling – Not just any credit or debt counselor will do. Under the rules, debtors must meet with a non-for-profit budget and credit-counseling agency officially approved by the United States Treasury. A list of qualified professionals is available from the Bankruptcy Court Clerk’s office. 

Tip #3: Multiple formats available – Credit counseling is available in a number of languages to meet the needs of individual debtors. Likewise, the counseling sessions may take place in person, over the phone, or over the Internet. 

Tip #2: Only limited excusals available – Credit counseling is generally required for everybody. However, there are three scenarios that could give rise to an excusal: (1) the debtor's advanced mental disease or incapacity so severe that credit counseling would prove futile (2) the debtor's physical disability that makes participation impossible (3) the debtor's active military duty in a combat zone. 

Tip #1: Counseling may be obtained late – In limited circumstances, the court may allow debtors to obtain counseling after the bankruptcy petition is filed, but only upon a showing of certain unique circumstances. If these stipulated criteria are met, a debtor may have up to 30 days after the filing to complete credit counseling. 
Contact an Alabama bankruptcy attorney today! 

If you are considering consumer bankruptcy, please do not hesitate to contact the Mobile and Baldwin County, Alabama bankruptcy attorneys at Padgett & Robertson today: (251)342-0264. 


Archived Posts

2017
2016
2015


Bankruptcy Law News

Padgett and Robertson assist clients with Bankruptcy, Personal Bankruptcy, Consumer Bankruptcy, Chapter 7 Bankruptcy, Chapter 13 Bankruptcy and The New Bankruptcy Law in Mobile, Alabama and throughout southern Alabama. Alabama State Bar Association Regulations require the following: "No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers." 11 U.S.C. 528 of the U.S. Bankruptcy Code requires the following: "We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.”



© 2017 Padgett & Robertson
4317 Downtowner Loop N., Mobile, AL 36609
| Phone: 251-342-0264

Personal Bankruptcy | The New Bankruptcy Law | Testimonials | About Our Firm | Bankruptcy | Client Resources | Getting Started

Facebook

Attorney Website Design by
Zola Creative