How to Pre-file for Bankruptcy

The U.S. Bankruptcy Court requires people considering bankruptcy to take formal pre-bankruptcy counseling. Some people regard the court-mandated counseling as the "pre-filing" for bankruptcy. The counseling became mandatory when Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. The goal is to help you understand the benefits and consequences of bankruptcy and to offer alternatives that are less damaging to your credit. The counseling sessions generally last about 90 minutes, according to the Department of Justice's U.S. Trustee Program, and you can officially file for bankruptcy after receiving a certificate of completion.

Instructions

1

Consult with a bankruptcy attorney. The attorney can help you decide which form of personal bankruptcy is best for you and also tell you about the mandatory pre-bankruptcy counseling session. Initial meetings with a bankruptcy attorney are often free, and you should take advantage of this even if you plan to represent yourself in the bankruptcy proceedings.

2

Ask the attorney for a list of government-approved credit counseling agencies offering pre-bankruptcy counseling in your judicial district. Or get the information and a list of counselors from the U.S. Trustee Program's website (see Resources). You must get the pre-bankruptcy counseling with a credit counseling agency approved for the judicial district in which you live. The counseling sessions are available in person, over the telephone and online. The counseling agencies are free to set their own price for the sessions. In 2011 the cost was around $50 for an individual and $75 for a couple, based on a review of websites for several counseling agencies. Some agencies offer the counseling for free to people who can't afford to pay.

3

Obtain an official certificate from the credit counseling agency indicating you have completed the pre-bankruptcy counseling. Include it in the paperwork you'll need to give to your attorney or handle yourself when you officially file for bankruptcy.