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

Yes, credit counseling is a requirement for filing for Chapter 7 Bankruptcy in North Carolina. According to North Carolina law, debtors must obtain credit counseling from an approved provider within 180 days before filing a bankruptcy petition. The purpose of this counseling is to educate debtors about all of their options for resolving their debts, so that they can make an informed decision about how to proceed. The counseling must be obtained from an approved nonprofit budget and credit counseling agency. This list of providers can be found on the U.S. Trustee Program’s website and usually includes agencies that have been approved by the Department of Justice. The counselor must provide a written evaluation of the debtor’s situation, a personal budget plan, and a certificate of completion. This certificate must be filed with the bankruptcy court when the petition is submitted. In addition, debtors must also complete an instructional course in personal financial management before a discharge is granted. This course must also be taken from an approved provider. The court may impose additional counseling requirements in certain circumstances, so debtors should be sure to check with the bankruptcy court before filing.

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