All persons declaring personal bankruptcy must complete credit counseling sessions, notes the Federal Trade Commission and the U.S. Program Trust. Otherwise it may lead to denial of your bankruptcy petition.
Credit Counseling Bankruptcy – Time Frame
You must complete a credit counseling session before filing for bankruptcy, warns the Federal Trade Commission. Most credit counseling sessions lasting between 60 and 90 minutes, and can be completed online, by phone or in person.
Credit Counseling Bankruptcy Considerations
Not just any credit counseling agency meets federal requirements for credit counseling before bankruptcy, you must complete your session by a U.S. agencyProgramme Trust approved and also keep a copy of your course completion certificate, the certificate is a necessary part of its initial bankruptcy filing paperwork.
Credit Counseling Bankruptcy History
The pre-bankruptcy credit counseling requirement came into force in 2005, when federal efforts to reform the bankruptcy approved in the legislature, according to the Federal Trade Commission. The applicable law is the law 11 USC ยง 111, says U.S. Trust Program.
