In Tennessee and all other states, before a person can file for bankruptcy, he or she must agree to obtain credit counseling to determine if filing a bankruptcy application is the most viable option in his or her circumstances. The U.S. government requires bankruptcy counseling so that people do not make such decisions without careful thought and appropriate research ahead of time. It is always best to review one’s entire financial situation, in case there may be another way to alleviate debt.
Bankruptcy counseling is multi-purposed
In addition to helping a person determine if filing for bankruptcy is the best choice to fit his or her immediate needs and long-term financial goals, pre-application counseling has additional purposes as well. Counseling sessions provide explanation regarding exactly how the bankruptcy process will unfold. A counselor will also make recommendations regarding budgeting and future financial decisions.
When do counseling sessions take place?
Bankruptcy counseling occurs at different junctures. The first counseling session typically takes place as a precursor to filing a bankruptcy application. After a person has submitted an application but before his or her debts are discharged, another counseling session takes place. This session is known as a “debtor education course.” The U.S. Justice Department provides a list of approved resources for the education sessions.
A strong support network can help restore financial stability
Most people encounter financial challenges at some point in their lives. There is nothing to be embarrassed about if one’s situation has prompted the need for additional support. There is a stigma attached to bankruptcy; yet, many people in Tennessee and beyond have used it as a valuable tool to eliminate debt and start afresh to build a stronger financial future.