Credit Counseling and Bankruptcy

For better or for worse, there are a significant number of areas of modern life in America that require an individual to enter into debt. The successful management of one’s debts helps to build a positive credit history, and this credit history can help to dramatically improve one’s future financial opportunities. Unfortunately, many people do not receive an adequate education in managing their finances before they are expected to engage in and understand the process of debt management. As a consequence, they wind up in dire economic straits, struggling satisfy their obligations fully.

In recognition of this issue and to reduce the likelihood that an individual will have to consider filing for bankruptcy again in the future, formal credit counseling requirements have been instituted in recent years. Contact the Arizona bankruptcy lawyers of the Harmon Law Office, L.L.C. at 480-829-0494 to speak with a skilled and experienced bankruptcy attorney who can help you to better understand the benefits and demands of the bankruptcy process

Credit Counseling Requirements

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 introduced these new requirements. Generally, individuals who are seeking to file for bankruptcy are required to receive credit counseling from a government-approved counselor within 180 days prior to the filing as a non-negotiable condition of filing. Then, a formal debtor education course must be completed before the bankruptcy discharge may be ordered. Here are some features of each:

Pre-bankruptcy counseling:

• A financial professional will review your financial situation
• Bankruptcy alternatives will be discussed
• A personal budget plan will be established

Post-filing course:

• Focuses on developing a practical post-discharge budget
• Addresses methods to promote better money management
• Emphasizes the importance of utilizing credit and other instruments wisely

Contact Us

We are committed to helping you to find the right way forward, which may involve filing for bankruptcy. Contact the Arizona bankruptcy lawyers of the Harmon Law Office, L.L.C. at 480-829-0494.