Credit Counseling And Bankruptcy
The decision to file for bankruptcy is not an easy one to make but the outcome can offer considerable relief with the reduction of debt. The intention is that if you are filing for bankruptcy you will get a fresh start on your finances. Under bankruptcy law, prior to filing for bankruptcy you must take a credit counseling course in which you would disclose your income, assets, and debts. The purpose is to make sure that you will be able to manage your budget and expenses, as well as to rule out other options to bankruptcy which could offer an alternative.
How Does Credit Counseling Work?
In general, anyone experiencing the burden of increased debt can benefit from the assistance a credit counseling agency. A credit counseling agency, also known as a debt counseling agency, can help an individual coping with debt settle or renegotiate their debts and financial accounts. Credit counseling agencies can also help people with planning and budgeting to help avoid getting into too much debt again. Through credit or debt counseling you can also find out if you might be a good candidate for bankruptcy.
How Does Credit Counseling Help Me With Bankruptcy?
While credit counseling agencies can help you figure out whether bankruptcy is right for you, you might have already visited a bankruptcy attorney to see if you would be a good candidate for bankruptcy.
The Walker Law Firm works with bankruptcies throughout the Greater Dothan, Alabama area and can advise you on credit counseling and debtor education.
After the bankruptcy petition has been filed, you would be required to take a debtor education course which offers strategies on how to maintain a budget and demonstrate that the petitioner has been educated in basic, personal financial management.
Both courses must be filed before the final order for discharge can take place
The good news is that the court approved credit counseling agencies are non-profit and relatively inexpensive, and that both courses can be taken online. If you are considering filing for bankruptcy and wondering what to expect as far as credit counseling or any aspect of the bankruptcy process, call our Dothan, Al Law Firm today for a FREE consultation.