The Credit Counseling Briefing is Your "Ticket In" to the Bankruptcy Process.
Before you file for bankruptcy protection, you will have to complete a pre-filing Credit Counseling Briefing using an agency that has been approved by the U.S. Trustee's office. Since the new bankruptcy law was implemented in 2005, a lot of bankruptcy cases have been dismissed because consumers failed to file their credit counseling certification in a timely manner. In addition, judges in the bankruptcy courts are largely unable to waive this requirement or to extend its deadline. Your Credit Counseling Briefing must be finished before you file your bankruptcy petition!
You can complete your Credit Counseling Briefing in person, but you may also have the option of using the telephone or the Internet. This session will likely include an assessment of your finances, a dialogue about available alternatives to bankruptcy, and a discussion about your budget plan.
When you've finished your Credit Counseling Briefing, you must be issued a certificate of completion to show that you've complied with this requirement.
Where Is My Local Approved Credit Counseling Agency?
There are inexpensive, interactive, credit counseling briefings available online at www.startfreshtoday.com. Other approved courses can be found through the Department of Justice, on the U.S. Trustee's list. The list is posted online at www.usdoj.gov/ust/eo/bapcpa/ccde/cc_approved.htm.
What Will the Credit Counseling Briefing Cost Me?
The fees you pay for your Credit Counseling Briefing will depend upon where you live and whether you complete your session in person, over the phone or online. The U.S. Trustee's office estimates a fee of about $50 for the typical Credit Counseling Briefing. A Start Fresh Today the Credit Counseling Briefing is currently listed at $30.
An approved agency must disclose all fees before you start your session. The agency is also forbidden to charge you any extra fees for your required certificate of completion.
What is the Deadline for Finishing my Credit Counseling Briefing?
You have the six-month period before you file your bankruptcy petition to complete your Credit Counseling Briefing. You must complete the briefing-and receive your certificate-before you file!
What Must I Do Once I Receive my Credit Counseling Certificate?
You must prove to the court that you have complied with this pre-filing requirement. In order to do this, your bankruptcy attorney will submit your credit counseling certificate of completion at the same time as your bankruptcy petition.
Could I be Exempt from the Credit Counseling Requirement?
It is very unlikely that you will be able to skip the Credit Counseling Briefing. The exceptions that do exist for this requirement are extremely limited and very strictly prescribed by law. Even judges in the bankruptcy courts have almost no authority to exempt you from the credit counseling requirement. If you feel you have a very good reason for being unable to fulfill the credit counseling requirement, consult with your bankruptcy attorney as far in advance of your filing date as possible. He or she can determine if you might qualify for an exception and can advise you of the documentation that you will need to prove it.
Isn't this the Same as the "Debtor Education" Course?
No! The Credit Counseling Briefing is a completely different program from the Debtor Education Course. Each must be completed at a different time in the process and each will issue its own separate certificate. You must complete your Credit Counseling Briefing before you file for bankruptcy; your Debtor Education Course should be finished after filing, but before you receive your discharge. It is vital to remember that both the briefing and the course are required if you wish to successfully petition for your bankruptcy protection and receive a discharge.