Credit Counseling Under The Bankruptcy Code
Reputable credit counselors can advise you on managing your money and your debts. They may also be able to develop a plan to repay your debts. Unfortunately, many credit counselors are not reputable and charge high fees and contributions that will cause you to fall deeper into debt and damage your credit rating. Furthermore, many misrepresent their non-profit status and/or their affiliations with religious or charitable organizations, and are little more than collection agents for the credit card companies. Under the changes to the bankruptcy code that took effect October 17, 2005, individuals filing for bankruptcy relief are required to take two short credit counseling courses, one before filing bankruptcy, and one after the case is filed. We will refer you to a reputable credit counselor who has been approved by the United States Trustee Department for these courses.