This article shares some insights about credit counseling on bankruptcy, which would help you determine if you are really ready to apply for bankruptcy.
The bankruptcy application has become a common cause in the United States. This is the only way to get rid of all their debts, but this procedure is very cumbersome, expensive and time consuming. Apart from this, one has to wait for ten years to create good credit again. Therefore, to help indebted people, the US government has come up with a new provision for such people, where it is mandatory for them to undergo credit counseling on bankruptcy from a certified advisor.
The reason why counseling was mandatory to prevent people from abusing bankruptcy law, be it Chapter 7 or Chapter 13. Under the bankruptcy of the Abuse Prevention and Consumer Protection Act of 2005, a person planning to apply for bankruptcy should undergo counseling and debtor training course within 180 days, from the government approved advisor. This would help them pay off the loans for a speculated period of time but opt for bankruptcy.
Consumer Credit Counseling for Bankruptcy
It is important that you go to the counseling organization that is certified by the US Trustee Program Department of Justice. Advisors and trainers who are approved and authorized can advertise their services. Credit counseling for bankruptcy and debtor education can be provided at the same time, but the debtor training is normally given when a person goes bankrupt.
When you go for bankruptcy filing, you must present the credit counseling certificate as proof of the completion of your counseling course. Counseling is completed as follows: Analyze your financial situation
Find bankruptcy alternatives
Finding solves your debt problems
Set realistic and practical debt management plan
Help you save a little while paying back the loans
Help you come up with good budget plans
In order to avail credit counseling on bankruptcy, you have to meet advisor personally, or you can also get it online or by phone. The session generally goes for 1-1 and a half hours or more, depending on the problems and solutions that exist for it. Free credit counseling is also available, if you are not in a state of paying any money, but you must apply in advance. You must pay the fee or fees when counseling is over, if you do not ask for exemption before the session begins. Charges can fall anywhere between $ 50 to $ 100.
How to Choose a Credit Advisor?
There are many credit counseling companies in all states, but you have to choose one that would help you solve your problems in less time. You need to use the following criteria for research and zero down on an organization: What are counseling fees?
Do they provide exemption service?
Are they certified by the government?
What is Advisor Qualification?
What is the reputation of the organization?
What services do they offer?
Do they offer a sound financial plan for you to avoid the problems of credit in the future?
These are some of the basic questions you need to ask before choosing an organization. When asking about most of the advisors, then choose the one that provides maximum service and charges reasonable fees. If meeting personally is not convenient for you, then you can go for online bankruptcy advice that serves the same purpose. If not, then you can go to telephone counseling per your convenience. For online advice, you need to check the authenticity of the site.
After proper credit counseling, you can decide whether to repay the loans or still apply for bankruptcy. You can go for credit counseling not only in the event of bankruptcy, but also when you need to improve your credit score or credit report. They can make some plans that would help you fix bad credit history. Counseling gives you a chance and time to think properly about your financial behavior.