Filing for bankruptcy provides incredible protection that allows you to regain control of your financial life. However, the process of filing for bankruptcy can be a complex one, even with the assistance of a bankruptcy attorney. Before you even begin the paperwork to file for bankruptcy, you must complete the credit counseling requirement 180 days ahead of time. This credit counseling process is also accompanied with a debtor education course, which is required before your debts can be discharged through bankruptcy.

The Benefits of Credit Counseling

It's important to note that your credit counseling and debtor education requirements cannot be completed at the same time. Instead, credit counseling occurs before filing for bankruptcy while debtor education occurs afterwards. You will receive a numbered certificate as you complete these requirements, which protects against fraud.

During your credit counseling session, you will:

• Assess your personal financial situation. This allows you to analyze your debts, assets, and income to determine your strategy moving forward. Regardless of the actions you take to recover financially, you can only truly experience a fresh start once you understand your current situation fully. Because filing for bankruptcy gives you the opportunity to reorganize and discharge debts, it's vital to understand your debts so you know which option is best for you.


• Explore the alternatives. One of the goals of credit counseling is to ensure that filing for bankruptcy is truly your best solution. You'll explore other alternatives, which you can only do once you fully understand your financial situation. While exploring various options is certainly helpful, guard against searching for an alternative for the sake of avoiding bankruptcy. Instead, truly weigh the benefits, and you'll likely find that filing for bankruptcy is the best solution for your situation.


• Create a budget plan. Whether you seek an alternative or file for bankruptcy, it's important that you have a budget plan in place that allows you to meet your goals. Without a plan, the solution you select will unravel and you might even find yourself falling behind on payments once again. This is especially important if you're filing for bankruptcy under Chapter 13 protection, where your debt is reorganized and you must maintain a monthly payment plan.

Looking for credit counseling can be a difficult process, but knowing the right questions to ask will help you find a service that can truly help you. Ask questions including:

• How will you keep my financial information secure?


• What are your fees?


• How will you help me develop a plan moving forward?


• How are your employees paid?

Aside from asking these questions, you'll also want to make sure that the credit counseling service is approved to fulfill your bankruptcy requirements. You can do this by checking with the bankruptcy clerk's office in the district where you live.