Credit Counseling Can Be Taken Same Day As Filing

On December 10, 2010, President Obama signed into law the Bankruptcy Technical Corrections Act of 2010. This seven page document of technical changes was necessary to correct several sections of wording, numbering, lettering and indentation. However, the Congress missed their chance to correct some major errors such as the hanging paragraph of Section 1325(a).

The most important change made within this technical amendment was the timing of credit counseling under Section 109(h). Prior to the technical amendment, there was a split of authority as to whether a debtor could take the credit counseling the same day as filing or whether the counseling had to be taken a full calendar day before filing, provided it was within the 180 period preceding the filing. The technical amendment now clears the controversy. The law now states that credit counseling must be received “during the 180-day period ending on the date of filing of the petition.” Thus, a debtor can simply take the credit counseling session on the same day as the filing so long as the counseling is taken prior to the actual filing.

The bottom line is that debtor’s attorneys can now advertise “same day filing” with certainty. Further, debtors can take immediate action to stop foreclosure by filing Chapter 13 without having to wait a full calendar day between the credit counseling session and the filing.

David M. Siegel now has Saturday hours in his Aurora Bankruptcy office.