Mandatory Credit Counseling To File Bankruptcy

As part of a comprehensive new reform agenda, federal law now requires all debtors in bankruptcy to complete a course of training, including budget analysis and credit counseling, from an approved agency. The course of training is designed to analyze each person's private financial information, and explain why bankruptcy is not necessarily the best option. One of the initial concerns regarding this requirement centered on privacy, and the extent that information obtained may be used against debtors who file. Credit card companies provide supplemental funding for many free and low cost credit counseling agencies.