What is Bankruptcy Credit Counseling?

Credit Counseling Is a Requirement for Bankruptcy

You will be required to take a consumer credit counseling course before you can file bankruptcy. The goal is to make sure you fully understand your options before you decide to file for bankruptcy.

During the credit counseling, the counselor will go over:

All of your options for relieving your debt
What bankruptcy means and if it is the right option for you, or if a repayment plan is better for you
Debt management and budgeting plans based on income

The course usually takes around 30-45 minutes and is taken online. If you do not have access to the internet, the course can also be taken over the telephone.

Finding an Approved Credit Counseling Agency

You must choose an approved provider from the U.S. Trustee's website. Review the list and find a provider that you want. Your provider must be an approved agency in order to receive credit for the course and qualify for bankruptcy.

How Much Does the Course Cost?

Most agencies charge a reasonable fee for this service. On average, the cost is around $50 for a course. Some agencies may be able to provide a reduced rate based on your income or waive the fee if you are unable to afford the fees.