Here’s the conclusion to our three-part blog series on the credit counseling requirement for bankruptcy.
Additional Important Info about Credit Counseling for Colorado Bankruptcy
Fact 6 – In rare cases, it can be possible to complete the credit counseling requirement after filing for bankruptcy.
According to bankruptcy laws, the court will ONLY allow bankruptcy petitioners to complete the credit counseling requirement after filing for bankruptcy when all three of the following conditions apply:
- The petitioner tried to get credit counseling from an approved agency within at least 5 days of the date on which the bankruptcy petition was filed, but the agency could not provide this service to the petitioner; AND
- There is some type of emergency that requires the petitioner to move forward with his or her bankruptcy case now/ASAP (as opposed to waiting until after having completed the credit counseling requirement to file the bankruptcy petition); AND
- Certifications regarding the above two requirements/facts must be submitted to the court with the bankruptcy petition.
Here, it’s crucial to point out that:
- For requirement 2 above, the court will decide what constitutes an “emergency.”
- Military deployment, physical disability and/or mental incapacity may also qualify people to escape the bankruptcy credit counseling requirement.
- Most people will NOT qualify for this exception, as credit counseling agencies/services are widely available.
Fact 7 – If you don’t fulfill the credit counseling requirement or qualify for an exception, your bankruptcy petition will be dismissed.
When it comes to the credit counseling requirement for bankruptcy, the bottom line is that, if you don’t complete it, don’t count on being able to resolve your major debt issues via bankruptcy. While you may be able to refile for bankruptcy later (after completing the credit counseling requirement), you should be aware that:
- You may have to wait another 180 days before you can legally file again.
- During this time frame, your debts may mount, and you will not have the court protections that come with the automatic stay of bankruptcy.
- This can mean that, if you aren’t informed about the requirements of bankruptcy, you could end up creating unnecessary complications for yourself, possibly even putting yourself at risk of experiencing wage garnishments, repossessions, foreclosures, etc.
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