Before filing bankruptcy, you must follow many steps to be followed. The bankruptcy counseling process is a crucial and required step in the filing process. The knowledge of bankruptcy counseling can assist in moving the process more efficiently.
Filing for bankruptcy is required under law. Bankruptcy Abuse Prevention and Consumer Protection Act. Counselors typically start by asking questions about your particular financial objectives, as well having the right to ask permission to receive a copy of the credit score.
In this stage, you’ll be required to consult with your advisor to come up with the plan for your expenses and create a total balance sheet. This will help you understand what amount of money you are able to spend and how it can be used.
In this way, the counselor will come up with an action plan. The plan will be long-term and immediate goals designed to help you get control of your money. Alongside this, they will also give you bankruptcy forms and a certificate of participation. The forms can assist you with the filing process when that’s the next step to be undertaken.
For additional information on bankruptcy counseling, read the accompanying video.