pre-bankruptcy credit counseling
It's now mandatory for debtors to undergo bankruptcy credit counseling prior to actually bankruptcy filing and getting discharged for debts. And this has to be got through credit counseling agencies which have been approved by the federal government. Therefore, if you are considering filing for a bankruptcy, here is some crucial information pertaining to pre-approved credit counseling for bankruptcy which could guide you in your endeavor.
It's now mandatory for debtors to undergo bankruptcy credit counseling prior to actually filing a bankruptcy and getting discharged for debts. And this has to be got through credit counseling agencies which have been approved by the federal government. Therefore, if you are considering filing for a bankruptcy, here is some crucial information pertaining to pre-approved credit counseling for bankruptcy which could guide you in your endeavor.
- Benefits provided by pre-bankruptcy credit counseling
While it's hard to find a government approved credit counselor, probable bankruptcy filers might often find it difficult to pay for additional costs towards credit counseling over and above fees for filing bankruptcy and obtaining attorney services. Nevertheless, pre-bankruptcy counseling for credit offers the below mentioned benefits.
- Debtors can be helped and actively assisted by credit counselors to negotiate their debt payments with multiple creditors to obtain manageable monthly payment.
- Credit counselors can be of help in exploring other bankruptcy alternatives such as debt settlement or reduction.
- Credit counseling before claiming bankruptcy inculcates effective debt management skills besides providing the debtor with the much desired financial education that is critical to avoid getting into additional debts in future.
Alternatively, consumers might not be the only one to benefit from bankruptcy counseling services before bankruptcy. Even creditors and U.S. bankruptcy court system stand to gain as it proves to be a money savior for them. This is because creditors are more likely to receive some credit payment from the debtor who has opted for government approved pre-bankruptcy credit counseling and secured a debt settlement plan instead. And as far as the state government is concerned, it saves a lot on court costs.
- Types of credit counseling services for bankruptcy
Typically, credit counseling facilities that are approved by the government depend upon a bankruptcy filer's location, preference and his specific needs and are usually available in various forms as follows.
- In-office bankruptcy counseling
- Through online process or
- By telephone
However, if a debtor is not able to obtain the services of a government approved bankruptcy counselor in his vicinity, he can fulfill the bankruptcy credit counseling requirements as mandated by law by using the services of a credit counselor on telephone or by going online.
However, when you are out to look for a credit counseling firm, you need to firstly ensure that it has a valid license issued either by Association for Independent Consumer Credit Counseling Agencies (AICCA) or National Foundation for Credit Counseling (NFCC). This is stipulated by the Federal Trade Commission (FTC).
To know more on credit counseling before bankruptcy or to get bankruptcy information, it is hereby recommended to utilize the professional services offered by reputed online service providers like BankruptcyOnly.
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