What is Credit Counseling in Bankruptcy

Photo: Moneycrashers.com

Under the bankruptcy law change in 2005 known as the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), one of the requirements to file for bankruptcy was taking two credit counseling classes.

One class is taken before you file the bankruptcy petition. The certificate you receive is valid for 6 months. The second class is taken after you file your bankruptcy petition.

The classes can be performed online and take approximately 1 to 2 hours to complete. The classes focus on budgeting and includes segments where you watch a video and also input your information such as income and expenses.

When I quote a client my fees and costs, I include the costs of the classes as well. Make sure your bankruptcy attorney isn’t charging you extra for the classes. Here is a separate post on attorney’s fees for a Chapter 7 bankruptcy.

Attorney Alex Hernandez

Representing clients in the areas of Chapter 7 Bankruptcy, Family Law/Divorce, and car and motorcycle accidents for 20 years. (904) 712-5565 or (305)-688-LAWS (5297). *Se Habla Español

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