What is a credit counseling agency?

A credit counseling agency is an organization that provides counseling to individuals who are experiencing financial difficulties and considering filing for bankruptcy. These counseling agencies are usually non-profit organizations and provide guidance to help individuals manage their debts, create a budget, and avoid filing for bankruptcy. Credit counseling may include advice about how to pay off debt, create a repayment plan, or negotiate with creditors. In West Virginia, credit counseling is required if you are considering filing for bankruptcy. The state requires that an individual must obtain a certificate of completion from an approved credit counseling agency in order to file for bankruptcy. Additionally, people who are considering filing for bankruptcy must receive a credit counseling briefing from an approved agency. The briefing must consist of information about budgeting, managing money, and using credit responsibly. Credit counseling agencies also often provide debt management plans to help people manage their debt. These plans are usually tailored to each individual’s particular financial situation, and include advice and assistance in negotiating with creditors to lower monthly payments or interest rates. The goal of such a plan is to help individuals repay their debts without filing for bankruptcy. Finally, credit counseling agencies also provide education on how to use credit responsibly, manage finances, and prevent debt from getting out of control in the future.

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What is a credit counseling agency?

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