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Do You Need Counseling?

Under U.S.C. §109(h), prior to filing for Chapter 7, 11, 12 or 13 bankruptcy, you must consult an agency approved by the U.S. Trustee’s office within 180-day period before filing for bankruptcy. A consultation is necessary in order to determine whether your financial issues can be handled outside of bankruptcy. A New York bankruptcy attorney may provide the resources you need to qualify for bankruptcy relief.

Understanding bankruptcy eligibility

Once counseling is completed, the respective agency will provide one a certificate of completion that one must file within 15 days after the bankruptcy filing. In addition, the agency will present a copy of any repayment plan established with the agency.  The Office of the U.S. Trustee’s provides the approved agencies for one’s judicial district in seeking guidance.   

Counseling agencies deliver services regardless of whether the debtor has an ability to pay.  In addition, there are additional requirements such agencies must adhere to, including:

  • Offering advising based on current financial condition
  • Revealing to a client the counselor’s qualifications, funding sources, the prospective impact of the proposed plan on a client’s credit report and the expenses of the program, which may be attributed to the client
  • Utilizing counselors who do not work on a commission basis, based on the result of the counseling advisement
  • Sustaining sufficient financial resources to offer continued support services over the term of the repayment plan  

The objective of credit counseling is to determine whether an informal repayment plan would enable you to bypass bankruptcy. Although it may be evident a repayment plan is not feasible, counseling is still required. You are not confined to the agency’s advice, and may proceed in any manner you choose.  However, if an agency finds a repayment plan is possible, you are required to file the plan with other bankruptcy documents for the court to assess in petition.  

If you face the bankruptcy process, seek an experienced bankruptcy attorney in New York to provide candid advice concerning your financial situation. 

Acquire compassionate support  from a New York bankruptcy attorney

By retaining the Mark E. Cohen, Esq. office, you will receive efficient representation. The office represents clients in Forest Hills, Rego Park, Kew Gardens, Richmond Hill, Corona, Elmhurst, Woodhaven, Middle Village, Ridgewood, Ozone Park, South Richmond Hill, Jackson Heights, Fresh Meadows, East Elmhurst, Maspeth, South Ozone Park, Woodside, Hollis, Flushing, Sunnyside, Bronx County, Kings County, Nassau County, New York County and Queens County.

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