Prior to filing for either Chapter 7 or Chapter 13 bankruptcy, individuals are required to go through mandatory credit counseling. This credit counseling session is designed to ensure that people who wish to file are truly in need of the protections that bankruptcy offers, and discusses possible alternatives. In addition, credit counseling offers individuals advice and financial expertise to help them make better decisions after their bankruptcy discharge. However, there are few exceptions to this requirement.
Dallas bankruptcy cases can be complicated by exceptions to the credit counseling requirement, which are few and apply to people in specific circumstances. For one, part of the bankruptcy code says that if there is no court-approved credit counseling bureau in the filer’s area or region, the filer can be exempt from the requirement. However, there are approved bureaus in nearly every region in the United States, and furthermore the requirement can be completed by phone or over the Internet, essentially making this stipulation meaningless. Chances are you will not get the credit counseling requirement waived through this loophole.
Another exception the bankruptcy lawyer cites is the “exigent circumstances” exception. If you had to file your Chapter 7 or Chapter 13 bankruptcy immediately in order to avoid some significant event that would threaten your financial stability, but were not able to complete the credit counseling course in time, you may be able to have the requirement waived. For example, if a lender has successfully placed a wage garnishment order and you urgently need to stop the garnishment, you may be able to file without first attending credit counseling.