In 2005, the United States bankruptcy laws changed immensely and credit counseling become a pre-requisite for filing for Chapter 7 and Chapter 13 Bankruptcy.  Under the new bankruptcy laws, people must complete credit counseling 180 days before they submit their bankruptcy petitions.  If people do not complete credit counseling, they will not meet bankruptcy eligibility requirements.  Additionally, people must complete the debtor education program after they file their bankruptcy paperwork in order to have their debts eliminated.

Credit Counseling Outlined

When people go through credit counseling, they will meet with a person or a specialist that is approved of by the U.S. Trustee Office for 60 to 90 minutes.  This meeting may be in person or on the phone and will cost around $50.  During counseling, the counselor will provide people with an evaluation of their finances.  People will receive information about the bankruptcy process including eligibility requirements.  People will also be advised of the alternatives to bankruptcy.  Once people have completed their credit counseling sessions, they will be provided with a certificate of completion.  These certificates are automatically generated through the U.S. Trustee Office to prevent fraud.

Debtor Education Outlined

Another bankruptcy requirement is participation in the debtor education program.  People must complete a debtor education program after their bankruptcy petitions have been filed or else their debts will not be discharged.  Debtor education programs last between 1 to 2 hours and may be completed in person, on the phone or online.  The cost for debtor education is a one-time payment of $50 to $100.  After people have completed the debtor education program, they will be given a certificate of proof, which is separate from a certificate of completion for credit counseling.

Tucson Bankruptcy Law Firm

The Tucson Bankruptcy Law Firm is truly a results oriented bankruptcy firm.  If you would like to speak with one of our Tucson bankruptcy attorneys about your debt, contact us to set up an initial consultation!

The Tucson Bankruptcy Law Firm is comprised of independent Tucson bankruptcy lawyers that handle Chapter 7 and Chapter 13 Bankruptcy cases in Arizona.