Does Pennsylvania Require Credit Counseling Courses for Bankruptcy?

If you are considering filing for bankruptcy, there are steps to take before you file.  You should call a lawyer early on in the process and talk to them about whether bankruptcy is right for you in the first place.  Then you must meet the requirements for credit counseling and other mandatory classes.

Credit counseling and debtor education are both required for bankruptcy cases, and credit counseling comes before you can even file for bankruptcy in Pennsylvania.  They are usually low-cost classes you only have to take once, and you can typically sign up for a course and schedule it very quickly when you need to take it.

For help with your potential case, call our Pennsylvania bankruptcy lawyers at Young, Marr, Mallis & Associates today at (215) 701-6519.

What Credit Counseling Courses Are Required for Bankruptcy?

Credit counseling is required for basically everyone applying for bankruptcy.  This must be completed before you can even file.

The agency you do credit counseling with has to be approved by the Executive Office for U.S. Trustees, so you can essentially trust any approved agency to have a course that meets the requirements.  It is not on you to go through the available courses and check if they meet all the requirements.

What Happens at Credit Counseling?

Credit counseling gives you the information you need to make an informed decision about your debt, credit, bankruptcy, and the process ahead of you.  This is a complex issue to deal with, and the requirement to attend credit counseling helps prevent issues down the road.

One goal is to simply prevent people from failing out of bankruptcy later.  If you get neck deep in a process you are not prepared for, it might push you to give up and potentially try again later.  In the meantime, that takes up your time as well as court time and resources, so limiting these issues is important.

This education can also help you succeed in your bankruptcy petition and avoid future excessive debt.

Classes are typically around an hour.

When Do I Take Credit Counseling?

Credit counseling must be done within 180 days before filing your bankruptcy petition.  When you call a Pennsylvania bankruptcy lawyer, we cannot file your petition until after you complete the required education, so this will be one of the things we discuss with you before filing.

If you have taken credit counseling before, it doesn’t count if it was earlier than 180 days before you file.  This means you should usually call a lawyer first rather than taking the initiative to do your credit counseling on your own, just in case there are delays in filing your case.

You can get the court’s permission to do your counseling after you file only if you meet all of these three requirements:

1. You have “exigent circumstances” justifying a waiver of this 180-day rule.
2. You applied with an approved agency but could not get the services within 7 days of your request.
3. The court approves your excuses.

We can file the proper certifications if you need to take advantage of this delay.  If you are in dire need of an automatic stay because you are about to lose your house or something similar, it might qualify.  However, the Eastern District of Pennsylvania’s Bankruptcy Court warns that counseling is quite readily available, so it is rare that you cannot get the counseling you need within a week.

How Do I Find an Approved Credit Counseling Agency?

You can find an approved credit counseling agency on the Treasury Department website.

To use their lookup tool, you need to know which district you are in.  Pennsylvania has three judicial districts: the Western District, the Middle District, and the Eastern District.  The links above either show a map or list of the counties in each district, so you can find out which district you live in.

From there, you just put the information into the Treasury Department website, and you can locate an agency near you.

Can I Do Credit Counseling Online or By Phone?

Most agencies do have options available for in-person, online, or phone counseling.  These convenient methods often allow you to get scheduled quickly and complete your credit counseling without delay.

Is Credit Counseling Offered in Other Languages?

Even if you can read our website, you might not be prepared to do credit counseling in English.  A number of agencies offer counseling in a broad range of languages, so you can take the courses in whatever language you understand best.

What Debtor Education is Required for Bankruptcy?

Debtor education is a separate class requirement.  Instead of coming before you file (like your credit counseling), debtor education comes after you file.

The goal of this program is to set you up for success after your discharge with tips on handling money and debt so you avoid future bankruptcy.

When Do I Do Debtor Education?

Debtor education comes after your filing but before your discharge.  Technically, it has to be done within 45 days of the first creditors’ meeting, but our lawyers can guide you through the requirements.

Can I Do Debtor Education at the Same Time as Credit Counseling?

Credit counseling usually has to be done before you file, and debtor education has to be done after, so you cannot do them at the same time.  However, many agencies offer both programs, so you can do them with the same agency.

Who Pays for Credit Counseling and Debtor Education?

Usually, the debtor applying for bankruptcy pays, but you are typically allowed to have someone else pay for you if they are willing.

How Much Does Credit Counseling and Debtor Education Cost?

Fees are usually reasonable for both courses.  Usually, you won’t pay more than $50 for either course, and some are half that cost.

If you are filing with a spouse, you can often take the course together for one price; you don’t necessarily need to each pay for your own course.

Many people filing for bankruptcy simply cannot afford this, and you can often get the fee waived if your income is under 150% of the poverty line.  Our lawyers can help you calculate that value, as it depends on some factors like household size.

Call Our Pennsylvania Bankruptcy Lawyers for Help Today

For your free case review, call the Allentown, PA bankruptcy lawyers at Young, Marr, Mallis & Associates at (215) 701-6519.