Credit counseling: What you should know

If you are thinking about filing for bankruptcy, you are not alone. Many people in Illinois and throughout the country have chosen to file for bankruptcy as a way to help them seek solace from overwhelming financial obligations when they have exhausted all other avenues. While there are several different types of bankruptcy to choose from depending on your personal financial situation, everyone who applies for this form of debt relief must complete an approved credit counseling course prior to submitting the required paperwork.

According to the Federal Trade Commission, credit counseling is designed to help you make the best decisions when it comes to dealing with your debt and improving your financial health. In addition, the program focuses on exposing you to all of your options when it comes to finding debt relief. This course teaches you how to evaluate your finances and develop a budget that could help keep you from getting into creditor turmoil in the future. Credit counseling courses can give you information that will help you recover from bankruptcy and rebuild your credit once the bankruptcy process is complete.

The credit counseling course must be completed at least 180 days prior to filing for bankruptcy. Once you have taken the course, you will be given a certificate of completion, which must be submitted along with your application for bankruptcy. Although there is a fee for taking the class, you may be able to have the fee waived if you are unable to afford the cost. 

This information is intended for educational purposes and should not be taken as legal advice. 

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