If you wish to file for bankruptcy, it’s important to understand what steps you must take before you can formally declare. Unfortunately, there is a misconception that you can initiate this process without any prior action. In reality, you must participate in a credit counseling course before you are eligible to file. As such, if you’re unsure what these courses entail or how to complete them, you’ll want to keep reading. You’ll also learn why working with Franklin County bankruptcy lawyers is in your best interest.
What Is Credit Counseling and Is It Necessary?
Credit counseling is a mandatory pre-filing requirement for those looking to declare bankruptcy. Essentially, this process requires those looking to file to meet with certified instructors to explore other debt-releif options, so they can avoid filing for bankruptcy and pursue other methods of debt repayment.
You should note that you will be unable to file for bankruptcy without previously completing the credit counseling courses. As such, you must complete this process within 180 days of filing. Additionally, you must ensure that the counseling service you attend is approved by the U.S. Trustee Program for your participation to count.
You should note that even if you find a viable plan through your credit counseling course, you are under no circumstances required to abandon your plans to file and pursue this avenue instead. You are simply required to show proof that you have completed the required course and show the plan created during this process.
How Do I Complete These Courses in Ohio?
As mentioned, in order for your participation in these courses to render you eligible for bankruptcy, you must ensure that you complete the course within the appropriate timeframe and find an approved course. To find courses, you can use the search option provided by the Justice Department. You will need to know your judicial district code in order to ensure you attend the correct course.
Many of these courses are available online or over the phone, which allows you to easily complete this requirement. You should note that there is generally a $50 fee, but you may petition the court to waive this expense based on your circumstances.
It is necessary to note that while these courses are required to file for bankruptcy, you’ll also need to participate in a pre-discharge debtor education course. This is required to receive a final discharge of debts before your case can officially close. Unlike credit counseling, the primary goal of debtor education is to help you explore financial tips and tricks to avoid falling back into debt. Like pre-filing counseling, you must submit a certificate of completion to obtain the final discharge of eligible debts.
Bankruptcy has many specific and challenging requirements that must be met in order to reap the full benefits of this process. That is why if you are considering filing, working with an experienced attorney with Cousino & Weinzimmer LLC is critical. Our firm understands how difficult this process can be to navigate, which is why we are committed to helping you through bankruptcy to reap the full benefits and receive the financial fresh start you deserve. Connect with a member of our firm today to learn more.
