Garcia & Gonzales, P.C.
The Credit Counseling Requirement for Bankruptcy: 7 Facts to Know (Pt. 2)
Resuming The Credit Counseling Requirement for Bankruptcy: 7 Facts to Know (Pt. 1), here, we’ll continue to reveal some important things you should know if you are considering filing for Colorado bankruptcy soon.
Credit Counseling for Bankruptcy: More Important Info
Fact 3 – The costs of credit counseling may vary according to your financial situation.
The Office of the U.S. Trustee has mandated that credit counseling agencies keep their fees “reasonable,” which can mean that these fees are around $50. However, it is possible for these fees to be reduced or waived when people can’t afford them.
In other words, credit counseling agencies are required to offer a sliding fee scale and to provide free services for those whose income is below a certain level. This is crucial given that people who are planning on filing for bankruptcy are already dealing with serious money problems.
Fact 4 – Joint petitioners will both have to complete the credit counseling requirement.
So, if spouses are filing a joint bankruptcy petition, both individuals will have to complete credit counseling in order to meet the qualifications for filing and have the petition be approved by the court.
Fact 5 – Credit counseling is different than the debtor education requirement.
While people have to complete credit counseling before filing for bankruptcy, before they are granted a discharge, they will have to complete another requirement – the debtor education course. In fact:
- If you are filing for Chapter 7 bankruptcy, you’ll have to finish your debtor education course within 60 days of the date of the 341 hearing (i.e., the meeting of your creditors).
- For Chapter 13 cases, you’ll have to complete the debtor education course before making the final payment in your court-approved repayment plan.
The goal of debtor education is to try to inform people of ways to manage their finances so that, ideally, they won’t:
- Slide back into serious debt
- Need to pursue bankruptcy again.
If this requirement is not satisfied, the bankruptcy court can close the case without discharge, requiring you to pay additional fees (and potentially incur additional headaches) to reopen your case.
Denver Metro Area Bankruptcy Attorney at Garcia & Gonzales, P.C.
Are you looking for real relief from serious debt? If so, you can trust an experienced Denver bankruptcy attorney at Garcia & Gonzales, P.C. to provide you with experienced help, honest answers, and the highest quality legal services. With more than 50 years of combined legal experience, our trusted lawyers have the legal knowledge, skills, and insight you can rely on to help you favorably resolve your debt issues and obtain a financial fresh start.
To learn more about your best debt-relief options, as well as how we can help you, contact us today by calling or by emailing us using the drop-down contact form at the bottom of this page.
When you contact us, you will communicate directly with one of our attorneys, not a paralegal or legal assistant. We welcome Spanish-speaking individuals to contact us also – hablamos Español.