4 Steps For Getting Through Credit Counseling Before Declaring Bankruptcy

Are you interested in declaring bankruptcy? Before you are able to declare bankruptcy, you usually need to go through credit counseling. Credit counseling may sound like an intimidating process, but it's really quite simple. Once you have found your credit counseling agency, they will generally walk you through the process. You cannot fail credit counseling, it's simply an important part of building up your new financial platform.

1. Learn About the Exceptions

There are some situations in which you don't need to go through credit counseling. If you are about to go into a foreclosure, get your wages garnished, or have another financial emergency looming on the horizon, you won't need to go through credit counseling. If you've requested counseling but couldn't get it within five business days, you may also be able to avoid the counseling—but you will need to show that you did make an attempt.

2. Take a Look at Your Finances

Unfortunately, credit counseling does cost money. However, it usually costs less than $100. If you do not have enough money to pay for the counseling, you may be able to qualify for a low income program that will be free. You will need to show how much money you make to qualify.

3. Finding the Right Agency

There are many agencies that offer credit counseling. You can usually contact your bankruptcy attorney to find out where the best and fastest program is. The credit counseling company will explain your current financial situation to you and identify whether or not you really need to go through bankruptcy. Usually, the credit counseling process itself is primarily a formality. 

4. Get Your Financial Documents Together

You will need to give your credit counseling agency all of the documents relevant to your financial situation. They will then create a budget for you. Collect your receipts, bank statements, credit card statements and anything else, such as loan information, that will give them a more complete picture of your finances. Your goal isn't just to show that you need a bankruptcy but also to show a complete picture of your finances. Through this, they will be able to identify the best ways to help you.

There's good news: even if the credit counselor tells you that you shouldn't go through a bankruptcy, you still can. The credit counseling company will give you suggestions, which could include debt consolidation or settlement. But you're only required to go through counseling, you don't need to actually follow the counsel. If you aren't certain what to do next, you can always consult with your bankruptcy attorney, one like Thrush Douglas L Attorney at Law.

About Me

A Little Legal Know-how Helps Everyone in Life

When I was a child and people asked me what I wanted to be when I grew up, I always told them I wanted to be a lawyer. I even followed an attorney one day during a school job shadowing experience. I really found the law interesting, and my favorite shows to watch were, and still are, court shows. However, when it came time to choose a major in college, I chose another career path that I now enjoy. However, I still love law and do some legal research on a regular basis just for fun. I decided that it would be a shame to let all of my legal knowledge "go to waste" by not sharing it with others, so I decided to start a blog to share my legal tips on along with some interesting legal cases and stories. I hope you come back often!

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