Is credit counseling a requirement for filing for Chapter 7 Bankruptcy?

Yes, credit counseling is a requirement for filing for Chapter 7 Bankruptcy in California. Before a bankruptcy case can be filed, debtors must take a credit counseling course offered by an approved credit counseling agency. This counseling session helps consumers understand the consequences of filing for bankruptcy and helps them to develop a budget plan to avoid future financial problems. The credit counseling course must be taken within six months before the bankruptcy case is filed and the creditor must provide a certificate of completion of the counseling to the bankruptcy court. The credit counseling course must be taken from an approved credit counseling agency that is authorized by the United States Trustee Program. The United States Trustee Program is a part of the United States Department of Justice and is in charge of overseeing bankruptcy cases. During the credit counseling session, the consumer must provide all pertinent financial information, including a list of all debts and assets. The consumer will also be given a debt management plan, if appropriate, to help them manage their finances and pay off their debts. The credit counseling course is an important step that should not be overlooked when filing for Chapter 7 Bankruptcy in California.

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