STOP! Before you file...

Before you file for bankruptcy relief, you must have completed a pre-filing credit counseling course from an approved non-profit credit agency. To qualify for bankruptcy relief, you must show that you received credit counseling from an agency approved by the U.S Trustee’s office within the 180-day period before you file your bankruptcy. Once you complete the counseling, the agency will give you a certificate of completion that you must file no later than 15 days after your bankruptcy filing date. It will also give you a copy of any repayment plan you may have worked out with the agency.

The stated purpose of credit counseling is to give you an idea of whether you really need to file for bankruptcy or whether an informal repayment plan would get you back on your economic feet. Counseling is required even if it’s pretty obvious that a repayment plan isn’t feasible (that is, your debts are too high and your income is too low) or you are facing debts that you find unfair and don’t want to pay. (Credit card balances inflated by high interest rates and penalties are particularly unpopular with many filers, as are emergency room bills and deficiency judgments based on auctions of repossessed cars.)

​What will the pre-filing credit counseling course cost me?

Credit counseling agencies may charge a reasonable fee for their services. However, if a debtor cannot afford the fee, the counseling agency must provide services free or at reduced rates. This means that the service must offer a sliding fee scale and a waiver of fees altogether for people below a certain income level (below 150% of the poverty level for a family of equal size). The Office of the U.S. Trustee, the law enforcement agency that oversees credit counseling agencies, has indicated that a “reasonable” fee might range from free to $50, depending on the circumstances.

Navigate to Tran Singh LLP's recommended online credit counseling course through DebtorCC by clicking below

Debtor CC | Online Credit Counseling Course

Unable to complete credit counseling through an online course? No problem! Navigate to Tran Singh LLP's recommended credit counseling course offered by phone by clicking below

Access Counseling | Credit Counseling Course

For a list of all credit counseling agencies approved pursuant to 11 U.S.C. § 111, ​click on the image below

Approved Credit Counseling Agencies | UST | Department of Justice