The Short Answer
Before you can file for bankruptcy, federal law requires you to complete a credit counseling course from an approved provider — this has been mandatory since the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. The course must be completed within the 180 days before your bankruptcy case is filed with the court. Once you finish, you'll receive a certificate of completion that must be submitted along with your bankruptcy paperwork. Most approved providers offer the course online, so it's convenient to complete from home.
With the new bankruptcy laws in 2005, Congress passed legislation requiring a person filing bankruptcy to take a credit counseling course within the 180-day period preceding the date the bankruptcy case is filed with the court. A certificate of completion must be filed with your bankruptcy. Most of the approved credit counseling companies provide the course online and the fees vary by company. However, it is important that you take your credit counseling course from an approved credit counseling company.
Key Takeaways
- Credit counseling is a federal requirement — you cannot file for bankruptcy without completing it first.
- The course must be completed within 180 days before your bankruptcy case is filed with the court.
- You must use an approved credit counseling provider, or your certificate will not be accepted by the court.
- Most approved providers offer the course online, making it easy to complete on your own schedule.
- After finishing the course, you'll receive a certificate of completion that must be filed with your bankruptcy paperwork.
- Fees vary by provider, so it's worth comparing approved options before you sign up.
Attorney Insight
The mistake I see most often is someone completing their credit counseling too early — they take the course months in advance, then their filing gets delayed, and that 180-day window expires. At that point, they have to take the course all over again before we can file. The other issue is using a non-approved provider because it was cheaper or easier to find online. The court will reject a certificate from a non-approved agency, which holds up the entire case. Always verify your provider is on the U.S. Trustee's approved list before you pay a dime.
