(Alexander from Pennsylvania) What is an approximate fee to take a credit counseling course as a requirement to file for bankruptcy?Dear Alexander:
Bankruptcy counseling is an additional requirement that must be met as a condition for certain individual bankruptcy filings. The Bankruptcy Abuse Prevention and Consumer Protection Act set a maximum charge of $50 for bankruptcy counseling that could be charged to an individual client.
Some of these bankruptcy courses are available online, and you can expect to pay the full $50 for those courses. If you are facing real hardship and want to actually learn something from your situation, then you might consider visiting a credit counseling organization for bankruptcy counseling.
Many of these consumer credit counseling service organizations are willing to heavily discount that fee. In some cases, the fee may be waived in its entirety.
Online courses are very popular since the debtor may remain anonymous and complete the requirement from the privacy of their own home. However, you should understand that credit counseling organizations do not judge you. You should expect that the average credit counselor sees far worse situations on a weekly basis.
You will first want to make sure that the agency is certified by the U.S. Bankruptcy Trustee. Alabama and North Carolina require separate certifications.
The course should take about an hour to an hour and a half. Upon completion, you will receive a certificate that will document that you have met the requirement. This course is known as pre-bankruptcy counseling, and the fee will be up to $50.
A post-filing debtor education course is also required as a condition of discharge of your debt. This course may take an hour and a half to two hours to complete. You will also be requested to pay a fee of $50 to $100. Again, you may request a partial or full waiver of this fee if it creates a hardship for you.
The U.S. Department of Justice publishes a listing of approved credit counseling agencies that provide bankruptcy counseling. Not all credit counseling organizations provide this service, so it is important that you confirm that the agency can provide a certificate for you. A separate listing of approved debtor education programs is also provided by the U.S. Bankruptcy Trustee.
