Credit Counseling

For most people, filing for bankruptcy is more than legal paperwork...it requires overcoming psychological barriers.  It may help to understand that the provisions of our bankruptcy laws were not intended to punish people.  The principle of our system is to provide U.S. citizens with the opportunity for a "Fresh Start".

Life happens.  The people who govern our country and write our laws understand that.  Many industrious, hardworking people find themselves in financial straits where bankruptcy is the logical option.  Historically, these have included Thomas Jefferson, PT Barnum, Mark Twain, Henry Ford, Milton Hershey, Henry Heinz and even Willie Nelson.  The list seems endless.  And while your case probably won't mirror Donald Trump's, it deserves the same objective analysis of the situation and options.  Credit counseling requires an intense focus on the facts of your financial situation.  Overcoming your emotions makes this process much less burdensome.  If bankruptcy turns out to be the logical solution, understand why it is the logical solution and move forward.

Credit counseling by an approved provider should be your first step.  Even if you've already attended counseling, bankruptcy courts require a specific program that must be completed prior to filing your case.  This is an established program that takes about an hour to complete either on-line or over the telephone.  It costs about $50 depending on the provider you use.  You must gather all of your financial information and organize it into property and debts prior to the course.  Most providers supply forms that you can fill out to make the process easier.

The U.S. Department of Justice provides a list of approved credit counseling providers on their website that you can access by clicking here: 

Greenpath is an approved provider headquartered in Southfield, Michigan and is commonly used for Livingston bankruptcy cases.  Hummingbird is another on-line provider approved for Michigan cases.   The provider you choose must be authorized to issue a certificate of program completion that will be filed with the bankruptcy court. 

       

A second course is required after your bankruptcy case if filed.   The second course focuses on Debt Management and must be taken before your bankruptcy case can be completed.  The Debt Management courses generally last 2-4 hours and also cost approximately $50.  Most approved credit counseling providers offer the Debt Management course too and may offer a small discount if both courses are completed with the same provider.  One provider that only offers the Debt Management course may be worth considering because of his entertaining style.   Radio and television personality Dave Ramsey offers counseling on his website that may even have you laughing at yourself! 

The most important thing is to use approved counseling programs that you feel comfortable with.