Credit Counseling During Bankruptcy in Chattanooga

When an individual decides to file for bankruptcy, they are usually in significant financial trouble. Bankruptcy is a good option for someone who is facing insurmountable debt but creating a petition does not automatically solve all of their issues. A debtor’s credit in the aftermath of a bankruptcy filing is usually in an undesirable state, and they may require credit counseling to fully repay their debts and return to financial stability.

If you are filing for bankruptcy and want to undergo credit counseling, reach out to a Chattanooga bankruptcy lawyer. A qualified attorney could ensure that you enroll in counseling classes that suit your needs and help you restore control over your finances. Speak to a skilled lawyer to learn about credit counseling during bankruptcy in Chattanooga.

Credit Counseling Process

There are two required credit counseling classes that a debtor must complete. One is meant to occur before the bankruptcy process, while the second is a financial management course that happens after the filing but before the debt discharge.

In Chattanooga, the bankruptcy code for Chapter 7 and Chapter 13 bankruptcy states that a person filing for bankruptcy needs to have already completed the first credit counseling course before creating a petition. The debtor must show the certificate for that class to their lawyer before they begin to compile the necessary information for a bankruptcy claim. The court will disregard their petition if they have not completed this step.

It may be beneficial for a debtor to consult with a bankruptcy attorney before they even attend their first credit counseling class, as discussing their issues with a local legal professional could help them choose the right agency and credit counselor who could aid their specific situation.

The bankruptcy court in the Eastern District of Tennessee has a list of approved credit counselors that a local attorney may encourage a debtor to seek out.

Required Materials for Credit Counseling

Before attending their first credit counseling session, a debtor should compile all of their relevant financial documents to give the counselor a clear picture of their particular case. These materials should include copies of their utility bills, their paystubs, their lease or their mortgage statements, and all of their credit card statements.

A credit counselor would want to closely examine these documents so that they can offer the debtor valid options to regain control of their debts. In some cases, a debtor may choose to just continue working with a credit counselor rather than going through with a full bankruptcy filing.

A credit counselor may advise a debtor to work out a deal with their creditor and attempt to pay off their debts before they have to file for bankruptcy. The counselor’s role in these cases is to help the debtor make the best choice for their financial future, and sometimes this does not involve a bankruptcy claim at all but instead involves a debt repayment plan set up by the counselor. A lawyer in the area could direct a debtor to a credit counselor who specializes in their particular needs.

A Chattanooga Attorney Could Help You Obtain Credit Counseling

A person who is planning to file for bankruptcy must complete certain credit counseling classes, and these courses can sometimes be the best way for them to repay their debts and become financially stable again. A Chattanooga bankruptcy lawyer could guide you through the process of finding a credit counselor and ensure that your needs are met. Call today to discuss credit counseling during bankruptcy in Chattanooga.

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