Clients often ask what to expect when completing the pre bankruptcy credit counseling before filing chapter 7 bankruptcy. Credit counseling is a course that offers advice and assesses your financial situation before filing bankruptcy. Credit counseling courses can be completed online in only an hour, do not affect your credit score, and typically cost around $30.
Before you can file for bankruptcy relief, you must complete a pre-filing credit counseling course. You can complete the online course at your own pace. You will also get one on one help, with a trained credit counselor, on a plan of action regarding your debt and financial situation.
The Process
During your counseling session, you will need to provide a variety of information regarding your financial situation and your reasons for filing bankruptcy. Specifically, you will need to provide:
– Income documents such as child support, alimony, or social security payment
– Expense details (information about mortgage or rent payments, food, insurance, childcare, etc.)
– A list of the debts that you owe (such as credit card statements or student loans)
With each individual debt, you will be required to provide …
– amount of money owed
– interest rate
– monthly payment amount
– account number
After you submit all of this information, you will be given a few numbers that analyze your financial situation. For example, you will be told your credit score, income, and net worth, preparing you to talk with a counselor.
The second part of the process is discussion with a credit counselor. This conversation can happen in person or over the phone. You and your counselor will cover many areas, including …
– how to manage your financial challenges
– for certain debts, direct negotiation with creditors
– a debt management plan
– the dangers of bankruptcy alternatives
Finally, when you have finished the counseling program, you will receive your official certificate necessary for filing bankruptcy. If you have questions about bankruptcy, or are looking for a qualified Riverside Bankruptcy attorney, contact us today at (951) 801-5570.