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What is Chapter 7 credit counseling in Tennessee?

Sometimes, people end up with debts they cannot pay, whether due to unemployment, unexpected household expenses or a serious illness that created large medical bills. One just want it to stop, so they file for bankruptcy.

Credit counseling courses are generally required before an individual in Tennessee can file for Chapter 7 bankruptcy. The purpose behind the course is to cut down on unnecessary bankruptcy filings, and to make sure a debtor had no other options available to him or her. It should not be confused with debtor or financial education courses, which are also required after filing the bankruptcy petition. These courses are meant to keep the debtor out of bankruptcy court in the future.

Credit counseling must be done prior to filing of the Chapter 7 petition, and the certificate of completion needs to be filed with the petition. A company certified by the government to provide such counseling must do it.

In counseling, the debtor will generally review his or her financial situation with the counselor, go over any possible bankruptcy alternatives and discuss a budget. It can last an hour or so in most circumstances, and can usually be done in person, online or over the phone.

Chapter 7 bankruptcy is usually a last resort for Tennessee residents. It is not something to be taken lightly, or entered into without an understanding of what it means. Those who are facing unpayable debt can benefit from the process, but may wish to consider consulting an experienced bankruptcy attorney.

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Mark T. Young & Associates
2895 Northpoint Blvd.
Hixson, TN 37343

Toll Free: 888-376-0282
Phone: 423-933-1606
Fax: 423-877-0363
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