The bankruptcy code currently requires that all people filing for bankruptcy receive mandatory credit counseling from a certified credit counseling agency before filing. Credit counseling is required even if it is unlikely to culminate in a workable plan for the client, and the bankruptcy code requires that this credit counseling be obtained by the client within the 6 month period preceding the bankruptcy filing. Additionally, Nova Law Group advises that clients not obtain credit counseling the same day as a bankruptcy filing; it is preferable to obtain the counseling at least one day in advance of the bankruptcy filing date.

When a client attends credit counseling, the credit counselor will attempt to work out a viable plan for repayment of the client’s debts outside of bankruptcy. In some cases, this is likely to be an exercise in futility, but all clients must go through the process before filing for bankruptcy. Typically a credit counseling meeting takes 1-3 hours, and at the end of the meeting, the counseling agency will give the client a certificate demonstrating completion of the program. It is this certificate that the bankruptcy court will require you to present to prove that you went through the counseling before filing for bankruptcy. Without this certificate, the court will likely dismiss your case.

A list of certified credit counseling agencies can be obtained on the website of the United States Trustee. Nova Law Group recommends that clients make certain that the credit counseling agency chosen is an agency that is certified on the U.S. Trustee’s website.