Is financial counseling required before an individual can file for bankruptcy?
Yes, once sufficient non-profit credit counseling agencies have been approved, the Act will require that before anyone files for bankruptcy, they must be certified by an approved non-profit credit counseling agency to have been briefed on opportunities for available credit counseling and to have received assistance in preparing an individual budget analysis. The U.S. Bankruptcy Trustee’s Office is charged with approving non-profit credit counseling agencies. This requirement can be waived if the debtor submits a certification describing exigent circumstances and stating that he or she requested credit counseling services but was unable to receive it within 5-days from the request. However, even if waived, the debtor must undergo counseling within 30 days of filing the petition unless the court grants a 15 day extension.
Related Questions
- Can the Official Receiver or his staff give advice as to whether it is appropriate for an individual to file his or her petition in bankruptcy?
- Do a husband and wife need separate financial counseling sessions if intending to file a joint bankruptcy petition?
- What are the most common reasons for an individual to file bankruptcy?
