Filing Bankruptcy Requires a Credit Counseling Certificate
One of the pre-filing requirements involves obtaining a certificate of successful completion of credit counseling with a government approved counseling agency. The counseling can take place up to six months prior to filing. If time is of the essence in filing for bankruptcy protection and you have not completed the counseling sessions, this can cause delays and problems so don’t wait until the last minute.
Credit counselors recommend going into counseling to discuss budgeting and financial planning options before debts grow too large.
There are several things consumers can do to Avoid Bankruptcy — getting a second job to help pay off debt, selling assets or downsizing to a smaller vehicle may be options for some. Sometimes, it’s working with the mortgage company and doing some kind of loan modification to get a lower payment.
A bankruptcy may seem like the only solution to severe debt problems — however, the long-term effects are worse. After a bankruptcy, your Credit Score can plummet 100 or more points. A bankruptcy is more serious than having past due, collection or judgment accounts.
Bankruptcy law requires that all debt collection calls, letters and efforts to reach debtors cease once a bankruptcy petition is successfully filed in court.
If a consumer is filing for bankruptcy, they should immediately tell the collector, provide the name of the attorney handling the case, and let them know.