Bankruptcy Credit Counseling Available in Pasadena and Los Angeles
Subject to limited grounds for a waiver, individual debtors must also pay for and undergo statutorily-prescribed credit counseling WITHIN 180 days BEFORE filing for bankruptcy under Chapter 7, 11, 12 or 13. The counseling must be from a nonprofit credit counseling agency approved by the U.S. Trustee, but need not be in person (e.g., over the internet is okay). The agency must have outlined "opportunities for credit counseling" and assisted the individual in performing a related budget analysis. The purpose, of course, is to determine whether the debtor's financial problems can be solved by an out-of-bankruptcy payment plan. BEWARE of credit counseling agency who charge a percentage of payments made through the agency. Also,in addition to adding to your already incurred expenses, those plans are difficult to cancel once you start and cannot proceed. Quite often, the better plan is to file for bankruptcy.
However, the credit counseling MUST BE completed and certificate obtained before your petition in bankruptcy can be filed; otherwise, your bankruptcy will be dismissed without any debt relief.. Frazee/Laron attorneys counsel you on the proper steps for having your debts discharged in bankruptcy rather than your bankruptcy case dismissed without a discharge and you continue to be responsible for payments because the proper steps were not followed in bankruptcy.
-RoseAnn Frazee
