Why do I have to complete credit counseling before filing for bankruptcy?
In 2005, congress enacted The Bankruptcy Abuse Prevention and Consumer Protect Act. This Act added the requirement of credit counseling for all individual Debtors. The purpose of the counseling is to give the person an idea of whether to file for bankruptcy and to let the person know there credit will be affected by filing for bankruptcy. After counseling, the approved agency issues a certificate that is filed with the bankruptcy Court. The certificate must be issued within 180 day (approximately 6 months) before the filing of the bankruptcy petition.