The Requirement of Credit Counseling and How it Can Help

If you have started speaking with an attorney about bankruptcy or you are in the early beginnings of filing for your business, you are now required to undergo a process known as ‘credit counseling,’ which can sometimes be a useful benefit that will help you deal with the prospect of debt. If you have never been through credit counseling before and you are wondering how the process works, it is important to find out more information so that you don’t head into this blindly. Everybody can use some extra help when it comes to their debt and saving the life of their business, which is why credit counseling is an important consideration that should always come first on your bankruptcy to-do list.

What is the Process of Credit Counseling?  

Credit counseling tends to vary based on which agency you work with individually. However, these meetings between you and a credit counselor will take place approximately 30 minutes to an entire hour and can be in-person or over the phone. Your advisor will typically talk to you about your financial situation and perhaps have you answer some in-depth questions so that they can get a better idea of your finances and the position that brought you to your bankruptcy decision for your business. Perhaps your credit counselor will talk about any circumstances that led to the outstanding debt or future roadblocks that will make it difficult for you to meet all of your financial goals. From there, a credit counselor will be able to tailor a specialized plan for you that will help you pay off debt and stay ahead.

Many people will prepare for these sessions by organizing all of their bills, receipts, and pay stubs that can give a credit counselor a better idea of what you make and what you have to pay for every month. Once your counselor has a better understanding of your financial situation, they might be able to tailor a plan on how you can reduce your debts, improve your financial picture, and help you move forward when it comes to your business and its successful future.

Is Credit Counseling for You?  

Credit counseling is a requirement when you are filing for bankruptcy. You should use this specialized type of counseling if you find yourself in an overwhelming situation with a high amount of debt. Many people will use this when they are in financial trouble, but others will use it as a way to avoid ending up in a bad financial situation to begin with. If you are planning on working with an attorney or you are working on moving forward with an attorney, it is important to understand that you will likely be facing credit counseling before you officially move forward with the process.

Moving Forward with Bankruptcy

If you are looking to gain a fresh financial start after facing the reality of bankruptcy, you can benefit from working with an experienced and skilled Chapter 7 or Chapter 11 Dallas bankruptcy attorney. At M.J. Watson & Associates, our skilled and experienced attorneys are willing to work with you when it comes to your future prospects and getting back on track for your financial future. Contact us to find out what we can do for you in your time of need at 214-965-8240.