Credit counseling before bankruptcy: what is required and when

Which courses are required, and when?

Bankruptcy law asks individual filers for two separate courses. They are easy to confuse, and they do different jobs: one comes before you file and the other after.3

The courses cannot be completed in the same session, because one comes before filing and the other after.6 4

Who is allowed to give the counseling?

Only agencies approved by the U.S. Trustee Program count. It publishes the approved list by state and judicial district. In some areas counseling is offered only by internet and telephone.9

The U.S. Trustee Program does not recommend any particular approved agency or guarantee the quality of its counseling. Debtor education must also come from an approved provider.6 3

The requirement applies to every individual filer. The U.S. Trustee Program says that includes people whose debts are primarily business debts.6

What happens in a credit counseling session?

An approved agency must give personalized counseling: an analysis of your current financial situation, a discussion of what contributed to it, and a plan to address it.6

If you take the counseling on the Internet or by automated telephone, it is complete only after a live interaction with a counselor, by telephone, live chat or email.6

The counselor may not advise you whether or when to file bankruptcy. That decision is yours.6

If a debt management plan is developed during the counseling, it must be filed with the court.7 1

Spouses filing a joint petition may attend the same session, and each receives a separate certificate.6 4

What does it cost?

The courses are paid for separately from the court fees, to the agency or provider. In its guidance to them (FAQ pages updated January 15, 2025), the U.S. Trustee Program presumes a fee of $50 or less to be reasonable for credit counseling and for debtor education. Higher fees need its approval in advance.6 4

Agencies and providers must disclose all fees, including any separate fee for the certificate, before the session starts. They must provide the service and the certificate without regard to your ability to pay.6 4

People whose household income is below 150% of the poverty level are presumed to qualify for a free or reduced-fee counseling session, and the same applies to the debtor education course.6 4

For comparison, the court fees are $338 for Chapter 7 and $313 for Chapter 13 (effective December 1, 2023).10 11 12

What are the steps, in order?

1. Pick an agency from the U.S. Trustee Program's approved list for your state and judicial district.9
2. Complete the counseling within the 180 days before you file.1 2
3. File the certificate from the agency with the court.7 1
4. After filing, take the debtor education course from an approved provider.3
5. Make sure the debtor education certificate reaches the court on time: in Chapter 7 within 60 days after the first date set for the meeting of creditors, and in Chapter 13 no later than the date of the last plan payment. A provider may file it on your behalf.8 4

A lost or incorrect certificate is replaced by the agency that issued it.6 4

Are there exceptions?

Yes, but they are very limited.3

• Urgent circumstances. You may give the court a certification that describes them and states that you asked an approved agency for counseling but could not get it within 7 days of the request. The court must find it satisfactory. The exemption ends no later than 30 days after filing, or 15 days more if the court allows it for cause.2
• Incapacity, disability or active military duty in a combat zone, if the court finds you unable to complete the requirement for that reason.2
• Districts where the U.S. Trustee has determined that approved agencies cannot adequately serve the people who need counseling.2

Each of these depends on the facts, so ask a lawyer or the court before relying on one.