Is it true I have to do some kind of counseling before I file Chapter 7 or Chapter 13 Bankruptcy? (Posted by MikeB on the Forum.)
Editor's Response:
Yes, you must complete a "Pre-Bankruptcy Counseling" requirement. However, the counseling usually does not take more than an hour and can be done over the phone. The Federal Trade Commission offers the following description on its web site (www.ftc.gov/bcp/edu/pubs/consumer/credit/cre41.shtm):
"A pre-bankruptcy counseling session with an approved credit counseling organization should include an evaluation of your personal financial situation, a discussion of alternatives to bankruptcy, and a personal budget plan. A typical counseling session should last about 60 to 90 minutes, and can take place in person, on the phone, or online. The counseling organization is required to provide the counseling free of charge for those consumers who cannot afford to pay."