Do I need credit counseling before I file?
Yes. An individual cannot file under Chapter 7 or Chapter 13 unless they received credit counseling from an approved agency within 180 days before the petition. There are narrow exceptions for emergencies and for districts that lack an approved agency. A separate debtor-education course comes after you file, and you generally need it to receive a discharge.
On this page
Two courses get mixed together. One is required before you file. The other is required after you file if you want a discharge. They are not the same class.
The briefing before you file
The Chapter 7 basics page says no individual may be a debtor under Chapter 7 or any other chapter unless, within 180 days before filing, they received credit counseling from an approved agency, in an individual or group briefing. The same rule is on the Chapter 13 page.
The U.S. Trustee Program is plainer: if the course is not completed before filing, the case could be dismissed.
If a debt management plan is developed during the briefing, it must be filed with the court. You also file the certificate the agency gives you.
Where to take it
Use an agency on the approved list. Pick your state and then the judicial district. Some agencies sit in another state and still serve your district by internet or telephone.
Alabama and North Carolina are not under the U.S. Trustee Program. Questions there go to the bankruptcy administrator for that district.
A credit-card issuer may send you to a counseling site. The Justice Department page warns that the agencies on its list are approved for the bankruptcy briefing, not for every other product they sell.
The exceptions
The basics pages name two. There are exceptions in emergency situations, and where the U.S. trustee or bankruptcy administrator has determined that there are not enough approved agencies. Those are narrow. Do not treat a busy week as an emergency unless a lawyer says the statute fits.
The course after you file
Debtor education is a separate instructional course in personal financial management. With limited exceptions, you have to complete it to receive a discharge. The U.S. Trustee Program keeps a different approved-provider list for that course.
A Chapter 7 discharge can be denied if you do not complete an approved financial-management course. Chapter 13 has the same completion rule before the court enters the discharge after plan payments.
What to do now
Find an approved agency for your district and keep the certificate. What to do when you can't keep up with the bills is the rest of the order. If you want help choosing who files the case, how to choose a bankruptcy lawyer is the checklist. Chapter 7 versus Chapter 13 is the comparison if you are still picking a chapter.
Sources
Where our facts come from
Who wrote this page
- Written by
- Chapter Fresh editorial staff. Who runs this site
- Licensed professional
- None. No bankruptcy attorney has checked this page.
Ask which chapter fits
A bankruptcy lawyer who serves your area may call about chapter 7 vs chapter 13. The call does not file a case or hire them.