To qualify as a debtor to file for bankruptcy you must complete a prepetition credit counseling class. This is one of the most unfortunate requirements imposed on you by congress in the 2005 Bankruptcy law changes. The credit card lobby convinced a naive Congress that the answer to the explosion in bankruptcy case filings is private debt management . They want everyone to get into a program to pay off the debt over time.
To encourage this behavior they require you to take two courses:
- Prepetition credit counseling
- Pre-discharge financial management
The best way to describe the prepetition credit counseling: A Joke. It must have made some congressman feel real good to require you to take a class that tells you what you already know…you need to file for bankruptcy. The best part is that it adds to the cost of the bankruptcy. Money you don’t have to burn.
Whatever my feelings, or your feelings about prepetition credit counseling, it is required that you and your spouse complete this class within the past 6 months to qualify to file a chapter 7 or a chapter 13 bankruptcy.
In an effort to make their fees for filing for bankruptcy seem as low as possible, many attorneys will give you a list of companies approved by the US Trustee to give prepetition credit counseling. You pick one, do the class, and bring the certificate to the lawyer.
At Balena Law Firm I have taken the time to review the course providers to find the best deal for your money. I looked for low cost and a quality experience for you. now recommend pioneercredit.com. This company charges $21 for both classes per household. It even includes a telephone course if you do not have a reliable computer. When you pay me your fees and costs, it includes the expense of the two courses. I will give you a firm code. Log on, you enter the code, I will be billed, and I will receive a completion certificate. You just go to the website, click the bankruptcy button, and do the course.
If you do not have a computer or your online access is off, we have a terminal waiting in the office. Unless you keep very good financial records it is better not to do the prepetition credit counseling class until Balena Law Firm has prepared your petition. The completed bankruptcy schedules are very helpful.
Hot Prepetition Credit Counseling tip:
If you are filing a joint bankruptcy case with your spouse. Both can take the prepetition credit counseling class at the same time. Some providers waste your time by making each do it separately.
- Both be at the computer at the same time
- One completes the new client sign up
- Be sure to add the spouse’s name and SSN
- Once done, the spouse should call Cricket at 866-719-0400 to report he or she completed the course as well and that each needs to receive a completion certificate.
- Cricket emails two certificates