Bankruptcy Requirements - Debt Counseling
Often before anyone considers bankruptcy or steps foot in a Boise Bankruptcy Attorney's office they have tried to pay off their debt on their own or they may have even gone to credit counseling. Even though many have taken steps on their own to improve their ability to be financially stable, the amended 2005 Bankruptcy Code requires that anyone who files for bankruptcy must take not one, but two debtor education classes.
Pre-Bankruptcy Debt Counseling
The first debt education course must be taken before you file for bankruptcy. This must be done within 6 months of the actual filing. This debt counseling focuses on helping individuals focus on ways that they might be able to pay off their debt on their own, without filing for bankruptcy. After you have completed this course you will be given a certificate of completion. Your bankruptcy lawyer will attach and file this with your bankruptcy petition.
Money Management Education
The second debt education class must be completed before your bankruptcy is approved. You must complete this education course otherwise your debts will not be discharged. This class focuses on personal finances. It teaches you how to budget, use credit wisely, how to manage your money and how to start saving, instead of spending. Upon completion of this course your bankruptcy attorneys will file the form evidencing completion and your bankruptcy can go forward.
How do you know where to go for counseling?
There are a lot of companies that would like you to come to them for debt counseling. The Federal Bankruptcy Court has a list of approved credit counselors which you can get from your Boise Bankruptcy Attorney. In order to be approved you must use one of these sources.
The policy behind the change in the Federal Bankruptcy Code was to ensure that people wouldn't just rack up debt and then use bankruptcy as an easy way out. While the majority of people who resort to bankruptcy are fine people who have had serious circumstances that effect their finances like divorce, illness or loss of a job, some people don't take financial responsibility seriously. Even though these courses are required to ensure that people understand the seriousness of bankruptcy, they do provide useful information such as how your finances change due to divorce, or how to approach a creditor and ask for help in paying off the debt instead of defaulting. Sometimes we are perfectly able to handle ourselves financially until a severe set of circumstances present themselves. As a Boise Bankruptcy Attorney I have seen individuals turn to bankruptcy because of a personal injury or a divorce or termination from their job of twenty years. These are good people who know how to manage their finances but the circumstances become so grave that they do not have a choice. Debt counseling may not help these people but, like with most things, uniformity wins the day. The list of debt counselors provided by the Federal Bankruptcy Court are accredited and highly effective counselors. Even if you think counseling won't help, you might be surprised.
If you are considering bankruptcy and would like to speak to one of our Boise Bankruptcy Lawyers give us a call, (208) 472-2383 and see what we can do for you.