When you wish to file for bankruptcy, it’s imperative to understand what this process entails. One aspect many are unprepared for is the mandatory credit counseling courses you must participate in. If you’re unsure what to expect from these courses or why they are a requirement, you’ll want to keep reading. The following blog explores these matters further and the importance of working with a Shelby County, TN bankruptcy lawyer to help you through this process.
What Is Credit Counseling?
Credit counseling is a requirement of bankruptcy. You must complete the courses no more than 180 days before you intend to file for bankruptcy. You must complete these courses to file for bankruptcy – if you do not, your case can be dismissed before it even begins.
These courses require you to meet with a counselor to explore your alternate options for overcoming debt without filing for bankruptcy. The counselor can help determine if debt management or negotiating with creditors is a better option for your circumstances. You should note that while you will be presented with different options, you are under no obligation to choose those over bankruptcy. However, you must include them when you file for bankruptcy.
In addition to completing credit counseling courses before bankruptcy, you’ll also need to participate in a pre-discharge course. This is another requirement that helps those who have been through bankruptcy learn strategies for budgeting, improving their credit score, and learning how to avoid financial risks in the future. Once you complete the course and submit the certification, your eligible debts will be discharged.
Why Must I Take Credit Counseling Courses to File for Bankruptcy?
It’s important to understand that these courses provide a number of benefits. Many underestimate the impact that filing for bankruptcy can have on their finances and credit. While this process can undoubtedly provide much-needed financial relief, it can also have a severe impact on your credit score, and ability to obtain loans, and even affect your housing opportunities. As such, this course ensures that those looking to file are fully aware of the risks they assume during this process.
In addition, you’ll find that pre-discharge counseling can provide important information regarding budgeting and debt prevention to help you avoid accumulating additional debts after your filing. Similarly, you can learn tips to help rebuild your credit so you can find financial success following the completion of your case.
Filing for bankruptcy is an incredibly important decision that must not be made lightly due to the impact that it can have on your life. While credit counseling can help you explore other options, if you’ve determined that pursuing this process is in your best interest, ensuring you connect with an experienced bankruptcy attorney from the Arnold Law Firm is imperative. Our dedicated team understands how complicated this process can be, which is why we will do everything possible to assist you during these difficult times. Contact us today to learn how we can guide you through your filing.
