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

Yes, credit counseling is a requirement for filing for Chapter 7 Bankruptcy in Michigan. Before a debtor can file for Chapter 7 Bankruptcy, they must complete a credit counseling course that provides both budget counseling and an analysis of the debtor’s financial situation. The credit counseling course must be completed within 180 days prior to filing the petition; however, it can be completed up to the day before the debtor’s petition is filed. The purpose of the credit counseling course is to make sure that the debtor understands the gravity of their financial situation and to determine if any other alternatives to bankruptcy exist. During the course, a debtor will review their income, expenses, and other debts in order to gain a better understanding of the financial choices they have. The counselor will then provide advice on how the debtor can best manage their finances and resolve their debt. Lastly, after the debtor has completed the credit counseling course, they must obtain a certificate of completion that must be filed along with the petition for Chapter 7 Bankruptcy. This certificate is proof that the debtor has taken the necessary steps to properly and responsibly file and manage their bankruptcy.

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

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