Pre-Bankruptcy Counseling

With the new law passed in 2005 in regards to the filing of

chapter 7 bankruptcy, it became law that anyone filing must

first get pre-bankruptcy debt counseling.



The debtor must get counseling and certification from a

non-profit credit-counseling agency before the forms can be

filed for your bankruptcy.



This usually entails one or more counseling sessions and

when completed, certification so you can proceed with the

bankruptcy filing.



There is work you need to do even before you get your

pre-filing credit counseling certification. There are forms

you will need to have filled out during your sessions.



One is the income certification form. This exposes your

income and includes a fee schedule. There is also a budget

form that will need to be filled out. It is pretty

self-explanatory.



With these forms complete, and your certification now

complete, you will need the non-profit credit counselor to

fill out your affidavit and agreement for credit

counseling. Your attorney, along with a copy of your state

ID, must also notarize this form.



All of these forms must be presented to the court clerk

before you begin to file your bankruptcy paperwork along

with a notable fee.



Many companies offer this service not only in their office,

but also online with one-on-one telephone counseling

sessions. Once you have completed these steps, you are

ready to file the paperwork with your bankruptcy court.



Be prepared though because following the court process,

there will be another counseling session you must attend.

This time it is a financial planning session, which will

help you get back on track to a financially better future.