Under 11 U.S.C. Section 109(h), every individual filing for bankruptcy must complete a credit counseling session with an approved agency within 180 days before the petition is filed. This applies to all chapters: Chapter 7, Chapter 13, Chapter 11, and Chapter 12. Without a valid certificate, your case can be dismissed before it even begins.
The 180-Day Window
Your credit counseling certificate is valid for exactly 180 days from the date you complete the course. If your bankruptcy petition is filed after those 180 days expire, the certificate is no longer valid and you will need to take the course again.
This is why timing matters. If you complete credit counseling on January 1, your certificate is valid for any petition filed on or before June 30. If your attorney does not file until July 1, you need a new certificate.
What Happens During the Session
The pre-filing credit counseling session is a structured review of your financial situation conducted by a certified counselor. Here is what to expect:
- Financial overview: The counselor reviews your income, expenses, assets, and debts. You will need to have a general idea of these figures before the session, though exact amounts are not required.
- Budget analysis: The counselor helps you create a basic budget based on your income and necessary expenses. This budget becomes part of your certificate.
- Alternatives discussion: The counselor is required to discuss alternatives to bankruptcy with you, including debt management plans, creditor negotiation, and budget adjustments. This does not mean they will try to talk you out of filing -- it is simply a legal requirement.
- Bankruptcy overview: The counselor provides general information about the bankruptcy process, different chapters, and what to expect.
- Certificate issuance: Upon completion, you receive a certificate that includes the date of the session and a budget analysis.
The session typically takes 60 to 90 minutes. Online self-paced courses may be completed faster if you move through the material quickly, but most providers require a minimum engagement time to ensure you are actually reviewing the content.
What You Need to Bring (or Have Ready)
Whether you complete the course online, by phone, or in person, have the following information available:
- Approximate monthly income (from all sources)
- Approximate monthly expenses (rent/mortgage, utilities, food, transportation, insurance, etc.)
- A general list of your debts and approximate balances
- Information about any assets you own (home, vehicles, retirement accounts)
- Your Social Security number (some providers require it for the certificate)
You do not need exact figures. Reasonable estimates are sufficient for the counseling session. Your bankruptcy schedules (filed with the court) will contain the precise numbers.
The Certificate
After completing the session, the agency issues a certificate of credit counseling. This certificate is a required document in your bankruptcy filing. It must be filed with the court either:
- Attached to your bankruptcy petition when it is filed, or
- Filed within 14 days after the petition date (though filing it with the petition is strongly preferred)
The certificate includes your name, the date you completed the session, the name of the approved agency, and a copy of the debt repayment plan (budget) developed during the session. Even if you and the counselor agreed that a debt management plan is not feasible in your situation, the budget analysis is still included.
How to Find an Approved Provider
The U.S. Trustee Program maintains an official list of approved credit counseling agencies, searchable by state and judicial district. You can find the list at justice.gov.
Only agencies on this list satisfy the requirement. A session with a non-approved counselor -- no matter how legitimate it may seem -- will not count. For detailed guidance on choosing a provider and avoiding scams, see Approved Credit Counseling Providers.
Cost and Fee Waivers
Pre-filing credit counseling typically costs between $15 and $50. Approved agencies are required by the U.S. Trustee Program to provide services to individuals who cannot afford to pay. If you are unable to pay the fee, ask the agency about:
- Complete fee waivers for filers below the federal poverty guidelines
- Reduced fees on a sliding scale based on income
- Payment plans for the course fee
For a complete breakdown of all bankruptcy-related costs, visit voluntarypetition.org.
Joint Filers
If you are filing a joint bankruptcy petition with your spouse, both of you must complete credit counseling. You can take the course together in the same session, but you will each receive your own separate certificate. Both certificates must be filed with the court.
What Credit Counseling Does NOT Do
It is important to understand what this course is and is not:
- It does not determine whether you qualify for bankruptcy
- It does not replace the need for an attorney
- It does not affect your credit score
- It does not obligate you to follow a debt management plan
- It does not report any of your financial information to creditors
The counseling session is a legal requirement, not a gatekeeping mechanism. Completing it does not prevent you from filing, and declining a suggested debt management plan has no effect on your bankruptcy case.