According to the Federal Trade Commission, credit counseling is designed to help you make the best decisions when it comes to dealing with your debt and improving your financial health. In addition, the program focuses on exposing you to all of your options when it comes to finding debt relief. This course teaches you how to evaluate your finances and develop a budget that could help keep you from getting into creditor turmoil in the future. Credit counseling courses can give you information that will help you recover from bankruptcy and rebuild your credit once the bankruptcy process is complete.
The credit counseling course must be completed at least 180 days prior to filing for bankruptcy. Once you have taken the course, you will be given a certificate of completion, which must be submitted along with your application for bankruptcy. Although there is a fee for taking the class, you may be able to have the fee waived if you are unable to afford the cost.
This information is intended for educational purposes and should not be taken as legal advice.