Antioch Bankruptcy Lawyer Says Credit Counseling Is Mandatory

Antioch bankruptcy attorney states that you need to take the credit counseling prior to filing whether it is a Chapter 7 or a Chapter 13 bankruptcy case.  If it is a joint case, husband and wife, then each party must submit to the credit counseling.  Now, the credit counseling can be done at the same time by both parties either in person, over the telephone or through the Internet.  However, most parties must be present and both parties must cooperate and participate in the credit counseling. 

The purpose of the credit counseling is to find out whether or not you are aware of your other options in terms of bankruptcy 7 and 13 or not bankruptcy options.  The credit counselor will also go over your budget and give you some advice concerning spending.  Most importantly, the credit counseling is a prerequisite to filing either type of bankruptcy case.  You simply cannot file a bankruptcy case without taking the credit counseling, otherwise, your case is void. 

When Congress passed the law October 17, 2005, they put in credit counseling as an effort, I believe, to appease lenders, creditors and credit card companies.  The thinking was that if people took credit counseling and were offered other opportunities other than Chapter 7 and Chapter 13, that maybe some of these clients would enter into these other opportunities such as a debt repayment plan.  Unfortunately for the credit card industry, credit counseling did not work the way they intended it to.  In fact, credit counseling has just been a hoot that someone needs to jump through or a hurdle that someone needs to jump over as a prerequisite to being able to file a bankruptcy case.  So both parties must take the credit counseling prior to filing the bankruptcy case and they must do this either individually or together but each must take the credit counseling and be issued a certificate prior to the case being filed.