Mandatory Credit Counseling

All debtors who plan to file for bankruptcy must attend a session of mandatory credit counseling provided by a court-approved, nonprofit counseling service. You must attend the session prior to filing for bankruptcy, but no more than 180 days before filing. The session lasts 60–90 minutes and costs roughly $50–100, though fee waivers are often available if you can’t afford the cost. You can attend a credit counseling session in person, on the telephone, or over the internet.

To find court-approved counseling services in your area, contact your district’s bankruptcy court or search the database of approved services online at www.usdoj.gov/ust/eo/bapcpa/ccde/cc_approved.htm. Another helpful resource for finding reputable credit counseling services is the Coalition for Debtor Education, a nonprofit organization, which you can contact online at www.debtoreducation.org or by phone at 212.636.7752.

The credit counseling session explains the different chapters of bankruptcy, your rights and obligations under the Code, and possible alternatives to bankruptcy. After the session, the counseling service will issue you a certificate to prove to the court that you attended the session, as well as a suggested repayment plan (if you’re filing Chapter 13 and a repayment plan was recommended).

Beyond the first session, if you do file for bankruptcy, you’ll also have to attend a second session before the court will agree to discharge any of your debts.