If you’re facing overwhelming debt, you might be considering your relief options. If a bankruptcy declaration appears to be in your best interest, it’s important to understand that you cannot file right away. Rather, you must complete a credit counseling course within 180 days of your bankruptcy filing date. Credit counseling plays a vital role in providing individuals with essential financial education. Please continue reading as we explore the purpose of this process and how our adept Gillette Bankruptcy Lawyers can help you get the most out of this course.
What is Credit Counseling?
The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005 was enacted to deter individuals from pursuing bankruptcy by making filing for it more difficult. It’s important to understand that under this Act, credit counseling became a mandatory step before filing for this relief measure. In Wyoming, you’ll be required to complete a credit counseling course within six months before filing a bankruptcy petition.
Credit counseling is a service that is designed to help people manage their finances effectively, understand their debt obligations, and develop strategies for repayment and achieving long-term financial stability. Essentially, credit counseling is required to ensure that you understand the consequences of filing and to explore alternative options. Bankruptcy is a serious step. The courts want to ensure you understand that it’s a last resort, offering other ways to handle your debts.
It’s imperative to understand that only certain agencies can provide credit counseling. It must be a nonprofit agency that is approved by the U.S. Trustee Program (USTP). The counselor will help you create a budget for your repayments. They also negotiate with creditors on your behalf to lower interest rates, extend repayment periods, and waive fees. This can help you avoid bankruptcy.
How Does It Differ from a Debtor Education Course?
While credit counseling helps you decide whether bankruptcy is right for you, a debtor education course helps you manage your finances after bankruptcy. You should note that both are required to get a bankruptcy discharge. This course serves to provide individuals with the resources to better manage their finances going forward. This is all in the hopes that you will not need to file for bankruptcy again in the future.
Unlike credit counseling, you must complete this course within 60 days from the date on which your 341 meeting takes place. Before any of your dischargeable debts can be eliminated, you will need to complete this course. Liability for outstanding debts will remain if this requirement is not met.
If you’re considering filing for bankruptcy in Wyoming, it’s advisable to consult a lawyer as they can assess your financial situation and guide you on the best course of action. At 307 Bankruptcy, we can ensure that you are not taken advantage of by credit counseling agencies. Our legal team is prepared to protect your assets and ensure you comply with all legal requirements related to bankruptcy filings. Connect with our firm today for more information.
