Before filing for bankruptcy, it is important to provide advice on your credit to ensure that your rating is not significantly affected by your bankruptcy. In fact, the change in the bankruptcy law of 2005 made credit counseling a mandatory part of the process. But don't feel sorry for it, because at least knowing the results of the bankruptcy application process can help you understand the choices you have to make and even influence how you submit.
Credit counseling is the key
Before you are even allowed to file for bankruptcy, you must actually submit a completion certificate in your credit counseling. Therefore, since the road to bankruptcy is conducted through credit counseling, it is important to know what to look for in a credit adviser. First, you should absolutely check that the consulting agency will provide the required certification to prove that you have obtained the proof of consultation and that your letter of credit has been viewed by a qualified person. Knowing the consultation in advance is for the purpose, which is the first step in optimizing the whole process.
What to look for
In fact, some credit counsellors have provided a special "pre-bankruptcy" course designed to provide you with specific advice on bankruptcy applications. These courses will detail all the information you need to know about your credit rating materials before submitting your application. A good course will include an assessment of your current credit and financial situation, a discussion of potential bankruptcy alternatives that you should consider, and a detailed description of the personal budget plan to help you complete your process.
Cost and expectations
In general, the consultation will be charged. The average cost is about $50, but if you can't pay, the agent must provide you with a free consultation. Obviously, you will need to provide proof that you cannot pay before applying for this part of the service. As required by law, you must discuss any fees with the credit counselor prior to the service. The typical course will last from 60 to 90 minutes and can be done in person, online or even by phone.
Before considering a counselor, you need to better understand their procedures. Obviously, make sure you know how much you want to charge, but besides that, make sure you know which records will be retained, whether they have been certified or certified by external services, and how they can help you plan to avoid bankruptcy or future Other credit issues.
Orignal From: Credit counseling before bankruptcy
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