Bankruptcy Counseling and Debtor Education
If you are unable to make headway paying back your debts, bankruptcy may offer some resolution to your financial problems. Bankruptcy is a court action that eliminates your debts, stops creditors from calling you, and gives you a new start financially. When you go through bankruptcy, you are basically asking the court to forgive, or discharge, a portion of your debts. If you elect to file bankruptcy, you should understand that it will affect your ability to establish credit during the ensuing years and will require that you manage your financial affairs responsibly in the future.
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (Act) provides checks and balances to ensure consumers are making better informed decisions when it comes to filing bankruptcy. Prior to filing for bankruptcy protection, the Act requires all Chapter 7 or 13 bankruptcy petitioners to participate in credit counseling and to provide the court a certificate of completion from a U.S Trustee-approved non-profit credit counseling agency. The Act also requires all consumers who file for bankruptcy to successfully complete a personal financial management education course prior to having their debts discharged. DMCC offers both the pre-filing counseling and pre-discharge education course to meet these requirements*.
Required Prior to Filing Bankruptcy
Required Prior to Discharge of Debts
* DMCC is approved to issue certificates in compliance with the Bankruptcy Code. Approval does not endorse or assure the quality of an agency’s services.