Pre Bankruptcy Credit Counseling Class

If you’re considering bankruptcy, chances are, you’ve already met with a credit counselor center. There are hundreds, if not thousands, of companies out there that promise to make your debt go away for a tenth of what you owe. Whether you choose to go this route is entirely up to you. But if you do decide to go forward with your bankruptcy petition, there are a few more things you have to do to complete the filing process. Of course, you must pay your $338 filing fee. (Or $313 if you’re filing a Chapter 13). The other important thing you need to do is complete your credit counseling session. If you can’t submit a certificate proving that you took this class, then your bankruptcy petition will be dismissed or, at a minimum, put on hold.

What is Credit Counseling?

The way the bankruptcy courts see it, if you were good at managing your bills, you wouldn’t be in the position that you’re in. People who know how to create and stick to a budget normally don’t have to file for bankruptcy. However, between the recession of 2008-2009 and the recent Covid-19 pandemic, people who normally paid their bills are in financial trouble. The courts don’t expect you to walk away from the credit counseling session with all of the answers. It’s not as if you’re going to complete the course and then decide you don’t need bankruptcy – all you need is a better budget and monthly calendar. However, they do expect you to take what you’ve learned in the session and carry it with you in the future. This way, you never find yourself in this position again.

Your Arizona Bankruptcy Lawyer Can Recommend One Online

Attending this credit counseling course is usually the final step before they initiate your bankruptcy proceedings. After all of your paperwork is in, you’ll be expected to submit a certificate of completion to the court. The best way to do this is to forward a copy of your certificate to your Arizona bankruptcy lawyer. This way, you know it’s going to get in the hands of the right person in time to meet the deadline. If you drag your feet taking the course, your attorney will remind you to get it done. They want to move forward with your case as badly as you do. There’s no reason to hold it up over a course that’s an hour or two long.

Can You Fail a Credit Counseling Course?

Sadly, you can actually fail your credit counseling class. Most of the courses provide the instruction and then ask you to take a short, multiple-choice examination. If you pay attention during the session, you shouldn’t have any trouble passing. However, if you do fail, know that you have sixty (60) days to get a passing score and earn your certificate.

Let an Experienced Arizona Bankruptcy Lawyer Guide You Through the Process

One thing any Arizona bankruptcy lawyer will tell you is that filling out a bankruptcy petition is not for the faint of heart. All told, the average bankruptcy petition is about fifty (50) pages long. This doesn’t count any attachments you need to submit with your petition. It’s no surprise that so many people pay an Arizona bankruptcy lawyer to do this for them. Imagine that you will out 49 pages right and just one page wrong, your entire case can be dismissed. Something like that won’t happen to your attorney. Unless you failed to provide them a certain piece of information, very rarely will your attorney have to submit a second filing.