Yes. Nearly everyone who files for bankruptcy must complete a credit counseling course from an approved agency within 180 days before filing. This requirement applies to both Chapter 7 and Chapter 13. You will also need to complete a second course, called a debtor education or financial management course, after you file in order to receive your discharge. At Law Offices of Terrence Fantauzzi, we guide clients through both requirements so nothing delays their case.
What Is the Pre-Filing Credit Counseling Course?
The pre-filing course is designed to help you review your financial situation and consider whether there are alternatives to bankruptcy. A counselor typically goes over:
- Your income, expenses, and debts
- A basic budget analysis
- Possible alternatives, such as debt management plans
- Whether bankruptcy may be the right choice for you
The course does not require you to choose any alternative, and completing it does not commit you to a debt management plan. It is simply a required step before you can file.
When Do You Need to Take the Course?
You must complete the course within 180 days before your bankruptcy petition is filed. If you take it too early, it will not count, and you will need to take it again. Your attorney can help you time the course so it lines up with your filing date.
After completing the course, you will receive a certificate. This certificate must be filed with the bankruptcy court along with your petition. Without it, your case can be dismissed.
Where Can You Take the Course?
The course must come from an agency approved by the U.S. Trustee Program for your district. Most approved providers offer courses online or by phone, and the session usually takes about one to two hours. Fees are typically modest, and many agencies offer reduced fees or waivers for people who cannot afford to pay.
If you are filing jointly with your spouse, each of you must complete the course, though many agencies allow couples to take it together.
Are There Exceptions to the Requirement?
Exceptions are limited. The court may excuse or delay the requirement in situations such as:
- Emergencies that make completing the course before filing impossible, such as an imminent foreclosure sale, with the course completed shortly after filing
- Incapacity or disability that prevents participation
- Active military duty in a combat zone
These exceptions are narrow, so most filers should plan to complete the course before filing.
What Is the Second Course After Filing?
After you file, you must complete a debtor education course focused on budgeting, managing money, and using credit responsibly. The deadlines differ by chapter:
- Chapter 7: Generally within 60 days after the first date set for your meeting of creditors
- Chapter 13: Before you make your final plan payment
If you do not complete this course, your case may be closed without a discharge, leaving your debts in place. Learn more about each process on our Chapter 7 bankruptcy page and Chapter 13 bankruptcy page.
How an Attorney Helps With These Requirements
Missing a course deadline is one of the easiest ways to derail an otherwise successful bankruptcy case. An attorney can recommend approved providers, confirm your timing, and make sure your certificates are filed correctly. For answers to other common questions, visit our bankruptcy FAQ.
Get Started on the Right Foot
Credit counseling is a simple but required step toward debt relief. Taking it at the right time and following up with the second course keeps your case moving toward a discharge. If you are thinking about filing for bankruptcy, call Law Offices of Terrence Fantauzzi at (909) 552-1238 to speak with a bankruptcy attorney about the next steps.
