How long does credit counseling take?

Credit counseling, now required by the updated bankruptcy law which was put into place in 2005, is an integral part of the bankruptcy process.Your credit counseling session should take anywhere from one hour to 90 minutes to complete, and you will be able to complete the counseling session either in person, over the phone, or via the Internet. With very few exceptions, if you are planning to file for bankruptcy protection you must get credit counseling from a government-approved organization within 180 days before filing. The Department of Justice approves the organizations which can provide this mandatory credit counseling, and only the counselor’s appearing on their approved list can provide counseling. There are two state exceptions to this law—Alabama and North Carolina in which court officials called Bankruptcy Administrators will approve your pre-bankruptcy credit counseling organization.

Once you have completed your pre-bankruptcy credit counseling you will receive a certificate which you must have to file for bankruptcy. The pre-bankruptcy counseling session will include an evaluation of your personal finances, a brief discussion of bankruptcy alternatives and a personal budget plan to help you stay on track before and after bankruptcy. If you cannot afford the normal fee charged by the organization they are required to issue you a fee waiver—make sure you have these arrangements solidified up front before you begin the session or you might find yourself being charged $50 or more. The counseling organization is required to discuss applicable fees with you before starting the counseling session.

 Getting Legal Help

If you have any questions at all regarding credit counseling, you should contact an experienced bankruptcy attorney who can guide you through the process.