Receiving Credit Counseling Before Bankruptcy In Utah

Credit Counseling Required For Utah Bankruptcies

When many people finally decide to file for bankruptcy, it’s usually their last option to stop the creditor harassment and the mounting piles of debt.  Bankruptcy is one way to help individuals in the midst of financial ruin.  Because bankruptcy is only one way to help with financial problems, the court will require anyone who wants to file for bankruptcy to consult a nonprofit credit counseling agency first.  By requiring a consultation, a person is informed about other ways to handle his debt load outside a bankruptcy.

In order to qualify for bankruptcy relief, a person must show that credit counseling was received within the 180-day period before filing the bankruptcy paperwork.  Once the counseling is complete, the agency will give those it has counseled a certificate showing participation in the mandatory consultation along with a debt repayment plan.

Credit Counseling May Deter Bankruptcy

Credit counseling is probably not the most exciting thing for someone who feels he has no other options to handle his debt besides through bankruptcy.  Many people feel that credit counseling will be a waste of time and they are anxious to proceed with the bankruptcy process.  Credit counseling, however, can be beneficial in some circumstances.  Besides, even if a person doesn’t want to participate in counseling there are few exceptions to the requirement.  A person doesn’t have to participate if he is in the military on active duty, incapacitated, has a disability preventing him from participating, or there is no agency available.

For most people, credit counseling is a requirement even if it is clear that a repayment plan won’t work.  But, courts require only that a person participate in credit counseling and doesn’t bind a person to whatever the agency proposes.  A Utah bankruptcy lawyer can help people with finding a credit agency to fulfill the counseling requirement.

A Utah Bankruptcy Lawyer Helps With Credit Counseling

If you are considering bankruptcy, call a Utah bankruptcy lawyer from Salcido Law Firm.  A Salcido Law Firm lawyer will set you up with a preferred agency so you can quickly complete your credit counseling requirement.  Once your counseling is complete, one of our attorneys will handle the rest of the bankruptcy process so you can rest easy.  Call 801.413.1753 to set up a free consultation and to start on the path of financial relief.

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