The credit counseling is basically just a hoop that one must jump through or a hurdle that one must jump over to get the relief that they really need under Chapter 7 or Chapter 13 claims Libertyville bankruptcy attorney. The cost of the credit counseling can range from $25.00 to $50.00, and the time it takes to complete the credit counseling could last from 15 minutes to 2 hours. Credit counseling could be done online, over the telephone, or in person with a credit counselor approved by the Office of the United States Trustees.
During this credit counseling session the credit counselor is going to ask very similar questions as the bankruptcy lawyer has asked at the initial consultation. The credit counselor’s going to ask specifically about the budget. More specifically what is the person bringing per month and what is the person spending per month? Does the person have any assets? Does the person have much in the way of liabilities? Is the person aware of some non-bankruptcy alternatives such as repaying creditors, entering into a debt management plan, or simply borrowing from someone or some source to be able to pay the debt? Once the credit counseling session is over, the individual will be issued a credit counseling certificate which must be forwarded to that person’s bankruptcy attorney. The local bankruptcy lawyer will then file that with the clerk of the United States Bankruptcy Court at the time the bankruptcy case is filed.
So credit counseling was an effort to prevent people from filing for bankruptcy. Congress and the credit card lobby believe that people were filing bankruptcy in record numbers and that they didn’t really have to file bankruptcy if they were aware of other non-bankruptcy alternatives. The credit counseling session is really just an exercise for my clients. My clients have to submit to a half hour or one hour session with a credit counselor and cover basically the same material that I have already covered for them absent any reference to the law. Once the credit counselor realizes that the person’s income does not exceed their expenses, or once the credit counselor realized that alternatives to bankruptcy are not going to work for this individual, the counselor is then satisfied that he or she has done their job under the Bankruptcy Code and the bankruptcy rules and will terminate the call or the credit counseling session and issue a credit counseling certificate.