If you’ve looked into filing for consumer bankruptcy protection as an individual or a married couple, you probably already know that there are requirements for pre-bankruptcy credit counseling. That means you have to take a course before you file and before your discharge, although those with low income can typically apply for a waiver of the costs or fees associated with the course to make it more accessible.
Essentially, in order to proceed with your personal bankruptcy filing, you must take a course that teaches you about the use of credit in order to help reduce the risk of you getting into financial hardship again in the future.
Struggling with debt now means you could struggle again later
People considering bankruptcy often wind up in their situation of financial hardship due to a combination of difficult economic factors. For example, perhaps you got into a car accident that greatly reduced your earning potential while also simultaneously creating massive medical expenses. It’s also possible that despite your best attempts to budget, your monthly expenses exceed your monthly income, especially when you factor in credit card payments.
Consumer debt education can help you better understand how credit works
By taking a consumer credit course, you learn a little bit more about how credit works and how to make it work for you — so that you can make informed decisions that will improve your situation. The course isn’t designed to punish you, just help you avoid common pitfalls and problems later.
If you’re concerned about your financial future, filing bankruptcy can help you get your feet back under you. The process is also designed to give you more information about how you can avoid being overwhelmed by debt again. An attorney can help you get the most out of your experience.