Bankruptcy Counseling

Bankruptcy counseling is mandatory for debtors seeking protection from creditors through bankruptcy. Firms must be approved by the US Bankruptcy Trustee before they may provide bankruptcy counseling and issue a certificate. North Carolina and Alabama require separate approval of bankruptcy counseling firms.

Bankruptcy counseling seeks to determine your fit for bankruptcy, as well as the potential for avoiding a bankruptcy filing. If your bankruptcy counselor feels that your situation is one that could be remedied without filing for bankruptcy, they might recommend that you attempt repayment through a debt management program through a credit counseling organization.

Attorneys cannot file bankruptcy on your behalf until you have received a certificate that confirms that you have completed bankruptcy counseling.

You may be able to find a company on your own that provides bankruptcy counseling. If you consult with an bankruptcy attorney, they may be able to refer you to a firm that they have worked with for other clients.

As you go through the counseling process to determine if you need bankruptcy, you can expect certain steps.

• Your counselor will evaluate your amount of debt and the types of debt you owe.
• Your net worth and value of assets will be determined.
• A budget will be constructed to measure your ability to repay debt.

There are national providers of bankruptcy counseling. Alternatively, you may wish to meet with a local agency that provides the service. Some provide face-to-face counseling, while others are available over the internet.