Do I Need to Go to Credit Counseling?

If you are planning to file for bankruptcy under any chapter, you may be wondering if you will need to go to credit counseling prior to filing your bankruptcy petition or at any other point in the bankruptcy process. In short, all filers in personal bankruptcy cases — but not in business bankruptcy cases — must attend credit counseling, and they must complete credit counseling prior to filing their bankruptcy petition. Our West Palm Beach bankruptcy lawyers can give you more information about the credit counseling requirement, as well as the additional debtor education course requirement that also must be completed with specific timing in your bankruptcy case.

Credit Counseling is Required Before You File Your Bankruptcy Petition 

If you are filing for bankruptcy as an individual, or as a married couple filing jointly — in other words, if this is a consumer and not a business bankruptcy filing — you will need to complete credit counseling prior to filing your bankruptcy petition. This is true regardless of whether you are planning to file for Chapter 7 bankruptcy, Chapter 13 bankruptcy, or another type of bankruptcy. As the US Department of Justice (DOJ) explains, if you do not complete credit counseling before filing, your bankruptcy case ultimately could be dismissed.

The DOJ provides a list of approved credit counseling agencies so you can ensure that you complete credit counseling and receive a certificate of completion from an approved agency. You can typically complete credit counseling online from the comfort of your own home.

Credit Counseling is Separate from Debtor Education 

It is important to know that individual (and married) bankruptcy filers need to complete another type of education course beyond credit counseling. In addition to credit counseling, US bankruptcy law requires that you complete a debtor education course after you have filed your bankruptcy petition (and thus after you have completed credit counseling) but before your discharge.

Like its approved list of credit counseling agencies, the DOJ offers a list of approved debtor education providers, and you can choose a debtor education course to complete online.

Sole Proprietors Exception

 While businesses that file for bankruptcy do not have the same requirements listed above as individuals, it is important to know that sole proprietors are an exception. Sole proprietorships are not entities that are distinct from their owners (unlike businesses structured in other ways, such as partnerships or LLCs or corporations). Accordingly, when a sole proprietorship files for bankruptcy, the individual sole proprietor is the filer. If you own a sole proprietorship and are considering bankruptcy, it is important to discuss your situation with an attorney to determine the requirements that are relevant to you.

Contact Our West Palm Beach Bankruptcy Attorneys Today 

If you have any questions about bankruptcy requirements, or if you have general bankruptcy inquiries and need assistance with your filing, do not hesitate to get in touch with an experienced West Palm Beach bankruptcy lawyer at Kelley, Fulton, Kaplan & Eller. The attorneys at our firm have years of experience representing clients in South Florida on a wide range of bankruptcy matters, from personal to business bankruptcy filings. Contact us today to learn more about how we can assist you.

Source:

justice.gov/ust/credit-counseling-debtor-education-information