Personal Bankruptcy Counseling and Education Requirements

Since 2005, changes made to federal bankruptcy laws require that those who file for personal bankruptcy must complete credit counseling before filing and debtor education after filing. Only organizations approved by the Department of Justice U.S. Trustee Program to deliver these services may be used by bankruptcy applicants. When you file your bankruptcy petition, you must also file as part of your paperwork a certificate of credit counseling completion. The counseling generally involves a review of your financial scene, information about alternatives to bankruptcy, and the creation of a personal budget. The counseling session may be done via the phone, online, or in person with an approved company and usually takes between an hour and 90 minutes. The fee for counseling is generally around $50 though this may vary according to your individual situation and the services provided.

After you file for bankruptcy but before your debts are discharged, you will need to file evidence that you completed a debtor education course by an approved agency. This course will involve information on how to create a budget, how to manage your finances, and how to use credit effectively and judiciously. This course may also be taken online, over the phone, or in person, generally taking about two hours, and costing in the range of $50 to $100. Both the credit counseling and debtor education fees may be waived for those who cannot afford them. You can discuss this option with the approved provider you select prior to signing up.

Chicago Bankruptcy Attorney

Many benefits can be obtained through a personal bankruptcy filing. You can eliminate credit card debt, medical bills, utility bills, and lawsuits as well as stop wage garnishment, foreclosures, car repossessions and more. To fully understand the bankruptcy procedure, its advantages and drawbacks, you should consult with an attorney who practices bankruptcy law in your state. At the law firm of Joseph P. Doyle, you can get skilled legal advice and direction from a team of attorneys who focus primarily on personal bankruptcies.

Learn what is involved in a Chapter 7 or Chapter 13 bankruptcy in the state of Illinois. Get your questions answered and your concerns addressed with the help of an attorney who routinely represents overwhelmed and struggling debtors in and around the greater Chicago area. Contact the firm for a free bankruptcy evaluation to get started.