You know your financial situation better than anyone else in Shreveport; thus, you may wonder why many might question your decision to seek personal bankruptcy protection. While the social stigma regarding bankruptcy has faded somewhat in recent years, the implications that come with filing imply that it is a decision that should not be taken lightly. Because of this, many that come to us here at Simon, Fitzgerald, Cooke, Reed and Welch in your same situation often question why it is that they are required to seek credit counseling prior to filing.
If avoiding bankruptcy was indeed an option for you, then it is likely assumed that you would do it. Yet requesting that you seek credit counseling before filing for bankruptcy is not implying that you have not already explored all your options; rather, it is a federal requirement.
Indeed, according to the Federal Trade Commission, all of those seeking bankruptcy protection must go through credit counseling within 180 days prior to initiating a bankruptcy case. During such counseling, a financial professional will perform an in-depth review of your current situation and construct a plan that details how you might be able to settle your liabilities without filing for bankruptcy. Yet one important point to remember is that this plan is not meant to show the court that you might not need to file for bankruptcy; the law does not require that you follow it. Rather (unless it is evident that you are blatantly trying to abuse bankruptcy privileges), the court simply uses it as simply one more indicator of where you are financially (although it may be considered when determining how to settle debts with certain creditors).
You can learn more about bankruptcy rules and regulations by continuing to explore our site.