hawaii bankruptcyA credit counseling course can be an important essential before and after you file for bankruptcy. When you file for bankruptcy, the courts will mandate that you attend credit counseling sessions.  You may think that it is stupid and a waste of time, but it is a requirement if you want to qualify for any kind of bankruptcy.  If you decide not to attend these counseling sessions, your petition for bankruptcy may be dismissed by the court.

When to do it?

If you decide to file for bankruptcy, you will need to attend a credit counseling course and successfully complete it at least 24 hours or more before you file the initial petition for bankruptcy.  If you do not complete it, then you may not be able to file.  You will need to provide your attorney with the proper “Certificate of Completion” before you can submit your petition.

The Courses

Many people wonder about the cost of the credit counseling course, how it all works, and what happens if you end up failing the course.  To address cost, you should consult with your lawyer, because they will have affordable recommendations for you.

The course itself can be completed from your own home over the phone, on the internet or in person.  The most important thing to remember is that you should only do the course with an agency that has been approved by the government.  Be prepared to answer questions that are related specifically to your personal bankruptcy situation including spending habits, income, expenses, etc.

One last thing to remember is that once your case has gone to court and you have been approved for debt discharge and your case is over, you will need to complete a second court mandated course.  This second course is about “financial management,” and is focused on giving you useful information about things such as budgeting, time management, work strategies, and more that will help you to rebuild your life after bankruptcy.  This can be done with any government approved agency by phone, internet or in person.

Credit counseling can help you to get back on track and to get a new start before and after bankruptcy.