Mandatory Credit Counseling and Debt Education

Author: Joe Pioletti Posted on: . Filed in: Bankruptcy.

When Congress passed The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), there were many changes to the Bankruptcy Code. One of the controversial changes was the requirement that debtors must complete mandatory credit counseling and debt education courses in order to file bankruptcy and obtain a bankruptcy discharge. These courses are an additional cost passed on to debtors as well as an additional step that debtors must take in order to get relief from their creditors and debt collectors.

While some people may view the mandatory credit counseling and debt education courses as a burden on debtors who are already suffering through a financial crisis, there are benefits of the mandatory credit counseling and debt education courses that can help debtors in gathering information for their bankruptcy forms and in rebuilding their finances following bankruptcy.

Advantages of Mandatory Credit Counseling and Debt Education Courses in Bankruptcy

Instead of concentrating on the fact that you are required to attend mandatory credit counseling and debt education courses, it is much more productive to focus on the advantages that you will receive from taking these courses.

  • Preparing information – As you go through the mandatory credit counseling course, you will be required to enter your household budget, your monthly income and your debts. All of this information is required by your attorney when preparing your bankruptcy schedules. By taking your mandatory credit counseling course, you will be gathering some of the information that you will need to give to your attorney.
  • Learning about why you need bankruptcy relief – In some cases, it is obvious why you need to file bankruptcy. You may have lost your job, suffered from a medical emergency or lost a spouse through divorce or death causing you to need help with the resulting debt. However, in some cases, individuals may not fully understand how their debt got out of hand. The information in the credit counseling course can help you see financial mistakes so that you do not repeat them in the future.
  • Helpful budgeting and money management skills – The debt education course offers useful information about budgeting, using credit wisely and managing your money better. By taking this course, you will learn the skills and information you need to make the most of the fresh start you are given through bankruptcy so that you can rebuild your finances for you and your family’s future.

The cost of the mandatory credit counseling and debt education courses is very minimal with some companies offering courses for a low as $10 per couple. There are several companies to choose from so finding a low price is relatively easy. In some cases, debtors qualify for a waiver of the fees. You can take courses on the internet or by telephone making them convenient and easy to complete.

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Pioletti & Pioletti is a full service law firm that represents individuals and businesses in a variety of areas of law including criminal defense, family law, bankruptcy and estate planning. With offices located in Eureka and Bloomington, we represent clients through Woodford County and McLean County.

When you need the assistance of an experienced bankruptcy attorney in Illinois, you need to call the compassionate and skilled attorneys of Pioletti & Pioletti. We are dedicated to giving our clients exceptional service to help them overcome the financial problems that is keeping them from enjoying life.


Joe Pioletti

Joe Pioletti

Attorney Joe C. Pioletti was born and raised in Eureka, IL.Joe received his Bachelor of Arts Degree in Business Management from Eureka College where he also minored in Spanish.Joe then received his Juris Doctor from Southern Illinois University School of Law.While in law school Joe worked in the Domestic Violence Advocacy Clinic and was a three-time recipient of the Charter Class Campaign for Academic Excellence Scholarship.
Joe Pioletti