Is credit counseling required before filing bankruptcy?

You are not alone if you are thinking of filing for bankruptcy in New Jersey. Making the decision to file is a huge step. It has far-reaching consequences for your finances and is not a decision to make lightly. The government has put safeguards into the process to help ensure you are making the right choice and that bankruptcy is the best for your situation. One of those safeguards, according to the United States Bankruptcy District, is the pre-filing credit counseling requirement. 

You must complete an approved credit counseling course before you file with the bankruptcy court. After completing the course, you are given a certificate that must go with your paperwork when filing. If you do not complete the counseling before filing, then your case will be dismissed. This is a requirement set under the Bankruptcy Abuse and Consumer Protection Act of 2005. 

Keep in mind that you must complete the course within 180 days before you file. So, you should not get counseling on the chance that you may file sometime in the future. You should wait until you are sure you will file within the next six months. If you are filing jointly with your spouse, you both must complete the counseling. 

There are some exceptions to this requirement, but note that they are very limited. The only exceptions are if you are in the military on active duty in a combat zone where you cannot possibly complete the course, if you are unable to do it due to disability or incapacity or if you tried to obtain counseling but unusual things occurred that prevented you from actually completing it. This information is for education and is not legal advice. 

 

No Comments

Leave a comment
Comment Information
Email Us For A Response

Tell Us About Your Case

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Keep In Touch

East Orange Office
7 Glenwood Avenue,
Suite 311B
East Orange, NJ 07017

Phone: 973-414-8069
Fax: 973-675-5886
Map & Directions

Newark Office
168 Bloomfield Avenue
Newark, NJ 07104

Phone: 973-419-5266
Map & Directions

Paterson Office
100 Hamilton Plaza,
Suite 405
Paterson, NJ 07510

Phone: 973-419-7631
Map & Directions

Jersey City Office
26 Journal Square,
Suite 603
Jersey City, NJ 07306

Phone: 201-205-2496
Map & Directions