About Credit Counseling

People who benefit from credit counseling do so in order to get their general finances back on track.  A certified credit counseling service can assess your financial situation, organize priorities, develop a budget, and make recommendations. Counselors have handy tools, resources and helpful organizational tips that you may not be aware of. When filing bankruptcy, credit counseling will be required.  Your credit counselor will review assets, debts, income and expenses. After the review, they’ll make some sort of recommendation or proposal. Regardless of whether you decide to follow their proposal or not, the counseling itself will be an educational tool.

Credit Counseling For Bankruptcy

Let’s assume that your serious debt problems look like they could be resolved by filing either chapter 7 or chapter 13 bankruptcies. This is based upon a previous consult with a bankruptcy attorney. Due to the requirements of the “Bankruptcy Abuse Prevention & Consumer Protection Act,” anyone considering bankruptcy must also complete a credit counseling session from a provider in compliance with the bankruptcy code. One of the reasons that the counseling is required, is to determine if you qualify for bankruptcy in the first place. If not, there may be better alternatives to consider.

Who Does Credit Counseling?

If you want to file bankruptcy, the company you choose to perform credit counseling must be approved by the U.S. trustee’s office. At Debt Advisors, your attorney will provide credit counseling referrals. One that is often used is called “Moneysharp.org.” It has an outstanding reputation as an industry leader in credit counseling services. The service is already very affordable but clients of Debt Advisors get an attentional discount.

Completion of Credit Counseling Class

Once the class is complete, you don’t have to follow what the counselor has proposed. Rather, your Debt Advisors attorney will review the findings and go over the different scenarios with

you. Afterwards, if bankruptcy is the best option, then proof must be provided to the courts to show that you have met this requirement. Your Debt Advisors attorney will ensure that the credit counseling certificate and bankruptcy petition are delivered to the courts.

More About Credit Counseling

Credit counseling classes can be taken in person, or online. With Moneysharp.org, the class is taken online. With this option, credit counseling has become very convenient.  The compiling of financial information takes the most time because the class itself is only going to take 90-120 minutes.  Again, when filing bankruptcy, proof of credit counseling must be provided with the petition for bankruptcy. A Debt Advisors attorney will take care of this for you. After bankruptcy is complete, the law also requires “post-bankruptcy” counseling. The post-bankruptcy credit counseling is often referred to as a “financial management” course. The focus of the post-bankruptcy counseling will be to prepare for “longer term financial success.”

Navigating through the intricacies of personal bankruptcy can be challenging. It’s essential to understand not just the process, but also if bankruptcy is the best option for your unique financial situation. At Debt Advisors, we break down the details for you, from the initial decision-making phase to understanding the cost of bankruptcy. Additionally, for those looking for personal insights, our client reviews section offers a wealth of real-life stories and feedback from individuals who have gone through the process.

If there are still questions with the credit counseling process, please contact a Debt Advisors attorney today and request a free initial consult. For more detailed information and assistance, especially if you’re in the Milwaukee area, feel free to visit our Milwaukee office for personalized guidance and support.