Counseling Necessary Prior to Bankruptcy Filing
The concerns are always high and the rush of blood reaches pinnacle when you think to be approaching bankruptcy-related matters. With the new bankruptcy law making its presence felt, you should identify whether there is need for filing bankruptcy or things could be turned around in your favor otherwise. How? Consider this.
Prior to filing for bankruptcy under either Chapter 7 or Chapter 13, you should have gone through credit counseling with an agency approved by the United States Trustee’s office. The purpose is to get an idea where the need is potent enough or whether an informal repayment plan will do the trick.
Although, counseling doesn’t bind you but if agency proposes a repayment plan, you have to submit the same to court with certificate(s) before you can file for bankruptcy. Once the bankruptcy case ends, you go through another round of counseling session to learn personal financial management. And after submission of proof to the court about requirement fulfillment you get a bankruptcy discharge.
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