Credit counseling is free or low-cost to almost anyone
seeking help in managing money. If your
debt is overwhelming and you seek bankruptcy to find relief, credit counseling
is a required part of the process.
Credit counseling helps you analyze how you accumulated so much debt as
well as assists in the plan development for how you should approach finding
relief from debt.
Seeking credit counseling will not harm your credit score. However, it is likely if you are seeking
counseling, your payments schedule and debt may already have impacted it.
Within six months before filing for bankruptcy, you must go
to an approved credit counseling service to discuss your debt and the options
for debt relief.
The agency must be
approved by the Executive Office of U.S. Trustees.
A list of approved counselors is found at
this website: http://www.justice.gov/ust/eo/bapcpa/ccde/cc_approved.htm
where you should select your state to find local counselors.
Finding the right counselor is
It should not cost you
thousands of dollars to get the services of a credit counselor.
Once a credit counseling session has been completed, a
certificate will be issued to prove you sought counseling services. The certificate will be included in your
bankruptcy court filing documents.