Opening the mailbox, an email or a voicemail to hear a creditor demanding money is stressful, particularly for those who don’t have the means to pay those bills. Once they realize that they simply can’t cover everything, some people may explore the option of filing for bankruptcy.
Anyone who’s considering filing for bankruptcy should know that there are responsibilities that come with filing. Two of these are to go through credit counseling and to take a debtor education course.
Credit counseling: Before filing
Credit counseling involves looking at everything financial with an approved company. This must be done within the 180 days immediately preceding the filing. During the counseling session, the provider will go over all the personal finances, discuss bankruptcy alternatives and create a budget plan.
Debtor education: Before discharge
After the filing, but before debts can be discharged, the filer must go through debtor education. This must also be provided by an approved company. It helps the person learn how to budget and use credit responsibly. It should also discuss how to read a credit report and how to improve the credit score.
Filing for bankruptcy can be a life-changing event because it provides the filer with a legal form of debt relief. This allows them to enjoy a fresh financial start that they can use as a springboard to a better life. It’s critical that they work with someone familiar with this process so they can ensure they’re handling everything in the proper manner.