Board Certified Michigan Consumer Bankruptcy Specialist

What is Bankruptcy Credit Counseling and why do I need to get this Certificate before filing Bankruptcy in Michigan?


Bankruptcy Credit counseling: What is it and why do you need to do it?

I first started practicing bankruptcy law in Michigan in the early 1990’s.  Back then it was easier and less expensive to file a bankruptcy case for my typical client.  The only drawback was that you couldn’t file the case electronically, you actually had to go down to the bankruptcy court and physically file the case by handing them your client’s original bankruptcy petition which averaged about 50 pages along with five copies (one copy for the judge’s file, one for the trustee, one for the intake office, one for my file, and a copy for my client.  Each bankruptcy case used more than ½ a ream of paper! Things changed in 2005 when electronic filing became available in the Detroit Bankruptcy
Michigan Pre-bankruptcy credit couseling

Before filing bankruptcy in Michigan or anywhere in the US, you must get a pre-bankruptcy credit counseling certificate.

court in which I practice. You could literally file a bankruptcy case 24/7 and 365 days a year from any place with an internet connection.

When did bankruptcy credit counseling become a requirement?

2005 was also the year in which the United States Bankruptcy code was overhauled.  Known as the Bankruptcy Abuse Prevention and Consumer Protection Act or BAPCPA for short, it was the most comprehensive overhaul to the federal bankruptcy laws in many years. One of the most dramatic changes was the requirement that before a person or married couple can file a bankruptcy case they must first complete a credit counseling briefing with a service approved by the United States Trustee’s office and get a certificate that they did so. My office cannot file the bankruptcy case without attaching the certificate to the actual filing. Completing the pre-filing briefing session is easy. It can be done via a phone call or online. My office will generally have my client’s complete the session on the phone in my office while we are working on their bankruptcy filing.
Some of my clients when they are first informed about the pre-filing credit counseling become apprehensive that the credit counseling agency may deny them and not allow their bankruptcy case to be filed.  I reassure them that the bankruptcy law states that they must simply complete the session and get the certificate.  You could be Bill Gates and be worth billions and the credit counseling agency must provide you with the certificate if you complete the briefing.
Most attorneys and even Judges feel the mandatory credit counseling requirement is a worthless exercise and that it does not meet its intended goal of reducing the number of bankruptcy filings.  When the law was enacted in 2005 that made both the “pre-filing briefing” and “pre-discharge education” a requirement, there was a feeling that many unnecessary bankruptcy cases were being filed that otherwise could have been in some type of debt management program. Having been a Michigan bankruptcy attorney for over twenty years and having helped thousands of bankruptcy clients during that time, I can honestly say that the vast majority of people that file are doing so because the have been pushed to do so by creditor actions during tough times and have no other viable alternative.
Bankruptcy is the road out of debt.

The pre-bankruptcy credit counseling requirement is easy to complete and will get you on the road to becoming debt free.

The law is the law and unless Congress eliminates the credit counseling requirement, it must be completed.  For the most part, much of what you will learn during the credit counseling briefing are things you most likely already know about money management however, some of my clients actually report to me that they benefited from the briefing in that they learned a little about putting together a budget or realized how much they actually needed to file bankruptcy and were reassured that they were making the right decision afterward.  Just view the credit counseling briefing as a simple step, done on the phone in my office or in your home that will allow you to file your bankruptcy to permanently wipe out your debt with a bankruptcy discharge.
Walter Metzen is a Board Certified Bankruptcy Attorney in Michigan and offers free consultations regarding all consumer debt related matters.  Feel free to call me toll free at 800-398-3328. 
Michigan Bankruptcy Attorney Walter Metzen

Michigan Bankruptcy Attorney Walter Metzen is a board certified consumer bankruptcy attorney practicing in the Detroit bankruptcy court.

About The Author

Walter A. Metzen's Profile Image Walter A. Metzen

(313) 962-4656

(888) 777-FILE or (888) DEBTGONE

Email Me

Recent Posts

Payday Loan Collection Scams
Cross Collateralization of Credit Union Loans in Bankruptcy

Popular Tags

Bankruptcy bankruptcy attorney in Michigan bankruptcy credit counseling Bankruptcy Discharge can I keep my car after bankruptcy Chapter 7 Chapter 7 bankruptcy Chapter 7 Bankruptcy Discharge Chapter 7 Bankruptcy in Detroit Michigan Chapter 7 bankruptcy in Michigan Chapter 13 Chapter 13 bankruptcy filing Chapter 13 Bankruptcy lawyer in Detroit Chapter 13 Bankruptcy steps credit union froze my bank account Credit unions and bankruptcy Detroit bankruptcy lawyer Detroit Chapter 7 Bankruptcy Detroit Michigan Bankruptcy Attorney Disclosure of assets in bankruptcy Documents needed when filing bankruptcy in Michigan eligible for bankruptcy discharge Filing Bankruptcy by yourself in Michigan Filing bankruptcy in Michigan How do I get a credit card after filing bankruptcy? how do I improve my credit score after filing bankruptcy How to get credit after bankruptcy How to improve your credit score after bankruptcy How to maximize the success of your Chapter 13 Bankruptcy how will bankruptcy affect my spouse's credit keeping your car after bankruptcy Michigan Bankruptcy Attorney Michigan bankruptcy lawyer Michigan bankruptcy proper asset disclosure Michigan Chapter 13 bankruptcy attorney pre-bankruptcy credit counseling in Michigan prior bankruptcy Reaffirmation agreements tips to find a good bankruptcy attorney What assets do I list or disclose on my Michigan bankruptcy filing What debts are wiped out in bankruptcy What do I need to list on my Michigan bankruptcy? When can I file bankruptcy again?