Congress made changes to the Bankruptcy Code in 2005 which required that prior to the filing of a Chapter 7 or Chapter 13 Consumer Bankruptcy, a person or married couple is required to do pre-filing counseling. This counseling class must be taken by almost everyone with a very few exceptions. This counseling session can be done on the telephone or if you prefer it can be done on the computer. There is no requirement that the session be done in person and since 2005 out of thousands of cases I have filed, I have only had one client who said he would like to take an in person class. This session takes 30-45 minutes. After the completion of the pre-filing session, the company will email us the certificate for us to file with your case when the Chapter 7 or Chapter 13 Bankruptcy is filed.
This class is not something to be afraid of, scared of or concerned about. I have never had a client who had a problem with the session and have had thousands of client’s take the session between the ages of 21 and 98 years old in order to allow the bankruptcy to be filed without problems.
Some people believe that there is an exception to taking counseling prior to filing if they have an emergency situation such as a Sheriff Sale. The problem is that the Sheriff Sale does not just happen. It was known about long before the day of the sale. Even if a person failed to act until the day before the Sheriff Sale, Credit Counseling can still be done prior to going in and filing for bankruptcy.