Why Credit Counseling Is Required And Beneficial When Filing For Chapter 7
Posted on: 15 November 2018
When you make the tough decision to file for Chapter 7 bankruptcy, your lawyer will talk to you about completing a credit counseling course before you actually sign and file the paperwork for your case. Additionally, you will have another course you must take after you file the paperwork for your case. Both courses are required for all individuals who file, but you can benefit greatly through these courses if you take them seriously.
Why they are required
Bankruptcy is a big event and is not something you will want to go through again after going through it once. It can be intimidating, time-consuming, and consequential to your credit score. Bankruptcy can also help you, though, if you are in a really tough financial position—and that is why this country allows people to file for bankruptcy. Because it is such a major event, though, taking credit counseling courses is required to help people learn how to prevent getting into debt in the future. By requiring that people take these courses, there is a better chance that people will learn better ways to manage their finances, and therefore, never need to use bankruptcy again.
How they will benefit you
If you want to get the most out of these courses and never have to file for bankruptcy again, you should pay close attention to the information they offer. Through these courses, you will learn the following types of things:
- How to create a budget – You will learn step-by-step instructions for this and following these instructions will help you control your finances in a better way.
- How to manage credit card spending – Learning how to use credit cards the right way could help you avoid racking up new debt in the future.
- How to live within your means – Living within your means is vital if you want to stay debt-free, and this simply means that you spend less than you earn.
- How to reduce monthly bills – You will also learn ways to cut your monthly bills, such as calling around for quotes for insurance.
- How to build your credit – You will also get the chance to learn ways to rebuild your credit after bankruptcy, which will be important if you want to gain new lines of credit afterward.
If you can apply the things you learn to your life, you could prevent falling into the debt-trap in the future. Contact a bankruptcy attorney to learn more about this.
Share