Financial counseling before bankruptcy

In Tennessee and across the country, debt relief often depends on meeting certain eligibility requirements. For instance, when filing for bankruptcy protection, an individual must complete an approved credit counseling programThis must be completed within the 180 day period prior to filing the petition 

What happens during a counseling session? 

During the meeting, the counselor conducts a review of a participant’s financial portfolio. Time is set aside during the session to discuss various forms of debt relief, including bankruptcy. A counselor will also make recommendations on how to implement a budget plan to avoid financial crises in the future. The session can be held in person, over the phone or through a virtual meeting online.  

Continued finance education after filing for bankruptcy 

After a person files bankruptcy petition, he or she must also complete a debt management course, which typically lasts anywhere from one hour to 90 minutes. Like the credit counseling session, proof of completion of the program is required. There are fees associated with both programs, but a fee waiver may be issued for someone who cannot afford to cover the cost  

Using bankruptcy as a financial tool to avoid future money problems 

Any number of issues may arise that spark a financial crisis; in fact, most Tennessee residents have encountered financial challenges at some point in their lives. Filing for bankruptcy can be a strategic decision to help get finances back on track. There are several types of bankruptcy, which is why it is a good idea to consult with an experienced attorney ahead of time who can review a particular case and recommend which type of debt relief best fits a person’s needs.  

 

 

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