What are the Credit Counseling and Debtor Education Courses for Bankruptcy in Las Vegas?
If you’re considering bankruptcy in Las Vegas, you may have heard about needing to complete credit counseling and debtor education courses as part of the process. But what actually happens during these courses? What do the courses cost, and how long do they take to complete? These are questions your bankruptcy lawyer can go over in detail.
Do I Really Need Credit Counseling?
You may not feel like you “need” credit counseling, especially if you have considerable financial experience, or if you already know what caused your current financial problems. However, anyone wanting to file for bankruptcy is required to complete an approved credit counseling course first. The Department of Justice has even said that every person who wants to file virtually any type of bankruptcy (Chapter 7, 11, 12, or 13) must complete the credit counseling course.
How Does Credit Counseling Work?
You must complete a credit counseling course provided by an “approved agency.” The United States Trustee Program (USTP) maintains a list of approved providers on its website, but your bankruptcy lawyer may recommend a specific provider for you. You don’t need to do the course in person. Most providers offer it over the phone and even online. Depending on the provider, the course usually takes between one to two hours to complete. The credit counseling course isn’t free, but it usually costs around $15 to $50. If you can’t afford this, you may be eligible for a waiver of the fee.
What Happens During and After the Counseling Session?
During the confidential counseling session you’ll go over your assets, debts, income, and expenses, so you’ll probably need financial records and other information to reference. You might also discuss budgeting tips, alternatives to bankruptcy, and other topics relevant to your circumstances. It’s not a test, and it doesn’t determine whether you are or aren’t eligible to seek bankruptcy relief. After completing the counseling session, you’ll receive a “certificate” of counseling. This certificate is necessary if you want to move forward with bankruptcy.
What is the Debtor Education Course, and How is it Different?
The debtor education course, also known as the “personal financial management” course, must be completed after you file for bankruptcy. The course can be completed by phone or online, and the fee is usually around $10 to $30. It builds on aspects of the credit counseling course but focuses more on long-term financial stability. You will discuss how to create a budget and tips for sticking to it. You’ll also be provided with resources to help avoid future financial pitfalls. Once you complete this course, you’ll receive a “certificate” for it. The certificate is required to receive a “discharge” of your debts when you successfully complete the bankruptcy process.
How Can a Bankruptcy Lawyer in Las Vegas Help Me?
The bankruptcy process is very technical, and the credit counseling and debtor education courses are parts of the process. An experienced bankruptcy lawyer is a legal professional who can guide you through the entire process from start to finish, including the required courses, helping you avoid financial problems after receiving your fresh start. To learn more about the process, contact Larson & Zirzow today.
Sources:
justice.gov/ust/frequently-asked-questions-faqs-credit-counseling
justice.gov/ust/list-credit-counseling-agencies-approved-pursuant-11-usc-111