What You Should Know About Credit Counseling and Bankruptcy

by DeLadurantey Law Office, LLC on January 11, 2012

As of 2005, bankruptcy laws in the United States require everyone filing for Chapter 7 bankruptcy to fulfill two new requirements. After the debtor completes a means test to determine if they qualify for Chapter 7 bankruptcy, the debtor must also go through credit counseling before completing the filing process.

Important Information about Credit Counseling

The new provisions that require those seeking Chapter 7 bankruptcy to undergo credit counseling were put into law through the Bankruptcy Abuse Prevention and Consumer Protection Act. It is important that you understand the following about this requirement:

  • If you are an active military member you may be exempt – this is for military members who are currently deployed and considered to be “in action” in the field
  • Those with a mental or physical disability may be exempt from counseling
  • Individuals who have been victims of natural disasters may also be exempt from the credit counseling requirement
  • You have to provide proof that you received credit counseling – this must happen within 180 days of filing for bankruptcy

For more details about credit counseling and filing for bankruptcy, contact an experienced attorney.

Many people may not be aware of the new laws regarding credit counseling and Chapter 7 bankruptcy. If you or someone you know is facing an insurmountable amount of debt and is looking for relief, contact a Milwaukee bankruptcy lawyer with the DeLadurantey Law Office, LLC, today by calling 414-377-0518. Our attorneys would be happy to sit down and discuss your options for getting out of debt and on with your life.


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