Credit Counseling Pre-requisite to Bankruptcy

In the United States, people who are planning to file for consumer bankruptcy need to complete credit counseling.  This holds true whether they are filing for chapter 7 or chapter 13 bankruptcy. 

In 2005, the laws surrounding bankruptcy in the United States changed a great deal.   At that time, credit counseling became a mandatory pre-requisite.  According to the laws that were introduced, people who planned to file for bankruptcy must complete credit counseling 180 days before submitting their bankruptcy petitions.   Additionally, after bankruptcy paperwork is completed and submitted to the U.S. Bankruptcy Court, individuals must go through a debtor education program. 

Unfortunately, if people do not meet these requirements, they will not be eligible for consumer bankruptcy.  Therefore, it is extremely important that people fulfill these requirements so they can expedite the bankruptcy process. 

At the Stone Law Firm, we know that people can become confused by the steps they must take when filing for chapter 7 or chapter 13.  For this reason, we encourage people to contact our law office and meet with a Salt Lake City bankruptcy attorney from our firm.

Be sure to read our post "Credit Counseling Explained" to learn more.