Credit Counseling When Filing For Bankruptcy

If you are planning to declare bankruptcy, you will need to go through several steps. And one of them is getting credit counseling as required by federal law. In Tennessee, you need to get counseling within 180 days before filing for bankruptcy.

One of the reasons applicants are required to get credit counseling is to determine if they can avoid bankruptcy. While bankruptcy can be beneficial, it should be the last resort for anyone with financial difficulties. During the course, your finances may be assessed to determine if a workout plan can be designed to help you pay your debts instead of taking the bankruptcy route.

Choose a government-approved organization

You can only get credit counseling from a government-approved agency. Tennessee has numerous approved agencies that offer the required course via the Internet or telephone and in-person in almost all languages, including sign language.

Pick an agency wisely

Be careful when choosing a credit counseling agency. Despite being approved, some agencies may make “unrealistic” promises. You should pay attention to the information an agency provides you during your research.

How will you pay for the course?

The credit counseling fee is usually friendly – generally about $50. Besides, your chosen agency will typically discuss the fee before you can begin the course. If you can’t afford to pay, request a fee waiver from your chosen organization before their session begins. With all the approved agencies in Tennessee, you will likely find one that meets your needs.

If you want to declare bankruptcy, consider seeking legal guidance to better understand the steps that you’ll need to take to get a fresh start.