As a result, the government has mandated that only certain agencies provide credit debt counseling to individuals registering for bankruptcy. This is a crucial requirement for the bankruptcy filing to be approved. Therefore, individuals who receive credit counseling from any agency may not be permitted to apply for bankruptcy. Only government-approved products will suffice.
Why is this regulation so strict? The law is stringent because the government wants to ensure that once a person has filed for bankruptcy, he or she will not do so again. A qualified credit counseling center will teach individuals how to manage their finances and organize their payments in accordance with their incomes, so that they do not end up with greater expenses than incomes. In addition, the bankruptcy credit counseling center will educate individuals on alternative options, such as refinancing or consolidating their loans, in lieu of the extremely cumbersome option of registering for bankruptcy. In fact, some of these bankruptcy credit counseling agencies will also offer to create budgets for these individuals and attempt to negotiate simpler repayment terms with their creditors. It can be said that the sole objective of the bankruptcy credit counseling agency is to prevent the bankruptcy from occurring.
Participating in the programs of a bankruptcy credit counseling agency is a crucial aspect of the bankruptcy procedure for these reasons. If you are contemplating bankruptcy, you will need to locate a reputable credit counseling agency. Internet search for competent bankruptcy credit counselors in your area. Discuss with your bankruptcy officer whether you can choose your counselor from this list once you have compiled it. This is crucial because if you choose a counselor who is not approved by the government, their advice will not be recognized by the authorities, and you will be unable to file for bankruptcy. However, once you find a qualified bankruptcy credit counseling agency, make sure to adhere to their program in its entirety, as they are only attempting to improve your financial situation without you filing for bankruptcy.
Remember that declaring bankruptcy is one of the simplest methods to eliminate debt, but it will permanently harm your credit rating. After a bankruptcy, it can take individuals up to ten years to restore their credit scores to a manageable level. Even if it occurs once, you are trained to prevent it from recurring.
" - https://www.affordablecebu.com/