Credit Counseling

Before you can file for bankruptcy, federal law requires you to complete a credit counseling session from a government-approved nonprofit agency. This is a consumer education requirement, not a gatekeeping mechanism — completing it doesn't determine whether you can file. It simply ensures that every filer has been exposed to information about their options.

The session typically takes 60–90 minutes and can usually be completed online or by phone. It covers your current financial situation, budgeting basics, and alternatives to bankruptcy such as debt management plans. At the end, you receive a certificate of completion that must be filed with your bankruptcy petition. The certificate is valid for 180 days — so don't complete it too early.

Cost varies by provider but is typically $15–$50. If you genuinely cannot afford the fee, approved agencies are required to provide the service free of charge. A list of government-approved credit counseling agencies for your judicial district is available at the U.S. Trustee Program's website.

Credit counseling is a legal prerequisite — without the completion certificate, your bankruptcy petition will be rejected. It's one of the first steps in the process, and completing it promptly means you can file when you're ready rather than waiting for the certificate.

While it's a required step, some filers find the session genuinely useful. The credit counselor may identify options you hadn't considered — like negotiating a debt management plan with a creditor — that could resolve your situation without bankruptcy. Even if you proceed with filing after the session, having explored alternatives satisfies both the legal requirement and good financial due diligence.