Frequently Asked Questions
Q: I filed bankruptcy in the past and I didn't have to go to credit counseling. Why do I have to do this?
A: The Bankruptcy Abuse Protection Act was passed in 2005 and requires everyone who files to participate in credit counseling before they file. The purpose of the credit counseling requirement is to help filers understand their options. It is not a qualification process, so no matter what you discuss with your counselor, it is still your decision to file. Bankruptcy has some serious drawbacks as well as advantages. You should have all of the facts before you file?
Q: Do I have to use an attorney to file?
A: No. Lots of people file without an attorney. However, if you have a complex situation, or are trying to protect an asset, such as a home, you may want to consult with an attorney.
Q: Are there other resources to help me file my paperwork?
A: Yes. The courts provide The "Unrepresented Debtor" packet for those who wish to file on their own. The forms needed are listed on their website. There are also document preparation agencies who will help you fill out your paperwork, but will not give you legal advice. Some attorneys will charge you a small fee to look over your paperwork once you've filled it out.
Q: I went to credit counseling last year. Do I have to do it again?
A: Yes. You have to have completed your credit counseling within 180 days of filing. You must also used an approved provider. The certificate you recieve is good for 180 days. If it expires, you must go through credit counseling again.
Q: I know I don't have any options. What good is credit counseling for me?
A: Sometimes it's good to have a third party to see your situation with fresh eyes. Your situation could be so terrible that the counselor may not be able to find a way for you not to file, but they may have other good suggestions about how to recover once you've filed, how to avoid it in the future, or maybe just suggest some things that will make your financial life better in the future. The session should be about you. It's a requirement, but you might just get something out of it.
Q: What if the counselor finds an option but I don't want to do it?
A: It's always your decision to file, but it's important to weigh all the options before filing. It will be much more difficult in the future to obtain credit if you need it. Banks may not allow you to open a checking account or have a debit card. If you were used to living on your credit, you will have to scale back immediately so you won't incur bank fees and penalties. It may be harder to find apartments or houses to rent. Some employers use credit to evaluate you for a job. Some insurance companies use it to decide on your rates.
Q: What if I decide to use one of the options the counselor came up with but it doesn't work?
A: If the solution you try doesn't work for you and it has been less than 180 days since you were issued a certificate, you can still file. If your certificate is expired you will have to go back to credit counseling. We keep your information on file for a certain amount of time. You would need to update your information but the second time will be much easier.