Is credit counseling required before filing for bankruptcy in Florida?
When you’re overwhelmed by debt, bankruptcy may be your best option for a fresh start. In Florida, you must complete credit counseling before and after filing for bankruptcy.
Pre-filing counseling helps you evaluate your financial situation and explore alternatives to bankruptcy. After filing, you must complete a debtor education course to have your debts discharged.
These requirements ensure you’re making an informed decision and gaining financial management skills.
Pre-bankruptcy counseling
Pre-bankruptcy credit counseling involves a thorough review of your personal finances and a discussion about all available debt relief options, including bankruptcy. During this session, which typically lasts about an hour, you’ll work on creating a personalized budget plan.
You can complete counseling in person, online or over the phone. Counselors charge around $50 on average but may reduce or waive fees based on your financial situation. After completing the course, you’ll receive a certificate that you must file with your bankruptcy petition within 180 days.
Post-bankruptcy filing counseling
After filing for bankruptcy, you must complete a debtor education course. This two-hour class covers budgeting, responsible credit use and money management.
Like pre-filing counseling, you can complete this step in person, online or by phone. Counselors charge $50 to $100 but offer fee reductions based on your income. You must submit the completion certificate to the court before it will discharge your debts.
Some people think you don’t need this step. However, if you fail to complete this course, the court can close your case without discharging your debts. You will then need to pay additional court costs and attorney fees to reopen your case.
An experienced consumer credit counseling attorney can guide you through these requirements. They can help you find approved nonprofit counseling agencies and ensure you meet all necessary steps in the bankruptcy process. Working with a skilled and compassionate lawyer can lessen the complexities of bankruptcy law and help set you on a solid financial footing for the future.
