What is Credit Counseling?

Under the 2005 amendments, an individual must receive a credit briefing before filing a bankruptcy petition under any petition. This law Section 109(h) proves that an individual may not be a debtor, unless he or she receives the briefings from an approved non-profit budge and credit counseling agency during the 180 days preceding the date of the filing. However, this course can be conducted over the telephone or via the internet. In our law office, we provide such links to our clients and offer them help in every possible way. These courses entitles them to certificates which are dated, and they should have been issued and filed within the 180 days limit. However, many court would not accept if the certificates are issued and filed on the same date. These certificates can only be issued by approved agencies. There are some exigent circumstances which exempt production of such certificates in the case of elderly and physically challenged debtors. Section 109(h)(4) states that the briefings is not required if the debtor is unable to complete the requirement because of incapacity, disability or active military duty in a combat zone. Incapacity is defined as an impairment due to mental illness or deficiency rendering the debtor unable to realize and make rational decisions with respect to his or her financial responsibility. Disability means that the debtor is so physically impaired as to unable to participate in an-person, telephone or internet briefing.


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