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Credit Counseling in Bankruptcy


This article explains pre-bankruptcy credit counseling and the requirement to receive a credit counseling session prior to filing for bankruptcy.

Here, learn about pre-bankruptcy credit counseling and how to choose a credit counselor.  

The information this article was written by the Federal Trade Commission and the U.S. Department of Justice. It has been lightly edited for style.  
Revised by on February 20, 2023.  

What is pre-bankruptcy credit counseling?

A pre-bankruptcy counseling session with an approved credit counseling organization should include an evaluation of your personal financial situation, a discussion of alternatives to bankruptcy, and a personal budget plan. A typical counseling session should last about 60 to 90 minutes, and can take place in person, on the phone, or online.  

Once you complete the required counseling, you must get a certificate as proof. Check the Department of Justice's U.S. Trustee Program website to be sure that you receive the certificate from a counseling organization that is approved in the judicial district where you are filing bankruptcy. Credit counseling organizations may not charge an extra fee for the certificate. 

Why do I have to complete credit counseling before I file for bankruptcy?

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 requires people who plan to file for bankruptcy protection receive credit counseling from a government approved organization within six months before they file. They also must complete a debtor education course to have their debts discharged. The Department of Justice's U.S. Trustee Program approves organizations who can provide the mandatory credit counseling and debtor education. 

How do I find a credit counselor?

If you’re looking for credit counseling to fulfill the bankruptcy law requirements, make sure you receive services only from approved providers for your judicial district.  

To locate your judicial district in Texas, visit Locate Your Judicial District.  Check the list of approved credit counseling providers online or at the bankruptcy clerk’s office for the district where you will file. There are bankruptcy judges for each U.S. District Court. Texas has four U.S. districts: 

Once you have the list of approved organizations, call several to gather information before you pick one. Some key questions to ask are: 

  • What services do you offer? 

  • Will you help me develop a plan for avoiding problems in the future? 

  • What are your fees? 

  • What if I can’t afford your fees? 

  • What qualifications do your counselors have? Are they accredited or certified by an outside organization? What training do they receive? 

  • How do you keep information about me (including my address, phone number, and financial information) confidential and secure? 

  • How are your employees paid? Are they paid more if I sign up for certain services, if I pay a fee, or if I make a contribution to your organization? 

What if I cannot afford to pay for credit counseling?

The counseling organization is required to provide the counseling for free for people who can’t afford to pay. If you can’t afford to pay a fee for credit counseling, ask for a fee waiver from the counseling organization before the session begins. Otherwise, you may be charged a fee for the counseling. It will generally cost about $50, depending on where you live, and the types of services you receive, among other factors. The counseling organization must discuss any fees with you before you start the counseling session. 

More information

To learn more about bankruptcy, visit the website for the U.S. Bankruptcy Court in your district: 

You can also visit Bankruptcy Basics, provided by the Administrative Office of the U.S. Courts on behalf of the Federal Judiciary

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