What is Credit Counseling in Bankruptcy?

When you decide that declaring bankruptcy is the right option for you, it’s important that you understand certain requirements you’ll need to meet moving forward. One of these requirements is attending a credit counseling session within 180 days prior to your filing.

If you’re wondering what credit counseling is and why you need to complete it before beginning your bankruptcy process, continue reading.

Why You Need to Attend Credit Counseling

The purpose of credit counseling is to determine whether you actually need to file for bankruptcy in order to clear your debts. Even if it’s glaringly obvious that your income won’t allow you to repay your debts in their totality, credit counseling can give you a better idea of which type of bankruptcy will be the right fit for you.

The agency you attend, whether in person or online, will take into consideration your income, debts, and expenses, and then confirm that you don’t have another feasible option to take care of your debts.

Moving Forward with Your Bankruptcy Declaration

In some cases, the credit counseling agency will have come up with a possible repayment plan for you to follow, but you are not legally obligated to follow this plan.

You will, however, need to submit this documentation when you file for bankruptcy and be prepared to explain to the judge why this option doesn’t work for you. Your attorney will also be reviewing your finances to determine which type of bankruptcy is the best option for your situation.

Schedule Your No-Obligation Consultation Today

If you have further questions about your upcoming credit counseling session, or if you are interested in working with a seasoned Indiana bankruptcy attorney at Rowdy G. Williams Law Firm, you can set up your initial case assessment today by completing the brief contact form at the bottom of this page or by calling our office directly at 1-812-232-7400.