What do I need to do before filing a Chapter 7 case?

If you are an individual, you must obtain credit counseling from an approved credit counseling agency before filing a Chapter 7 case.  (11 U.S.C. § 109).  The debtor must receive credit counseling within the 180 days before the bankruptcy petition is filed.  If you and your spouse file a joint bankruptcy petition, both of you must obtain credit counseling. Credit counseling may be conducted over the phone, over the internet or in person. When you complete credit counseling, the agency will provide you with a credit counseling certificate.  This certificate must be filed with the court when the petition is filed.

In addition to the credit counseling certificate, you must also complete:  

Voluntary Petition for Individuals Filing for Bankruptcy (Bankruptcy Form 101)

Place a check in the appropriate box of Part 5 of the Voluntary Petition indicating one of the following:

• Box 1 states that you received credit counseling within the180 days before the filing of the petition and you have the certificate from the agency.

• Box 2 states that you received credit counseling within the 180 days before the filing of the petition, but you do not have the certificate from agency.

Limited exceptions to the credit counseling requirement are addressed in Box 3 and Box 4:

• Box 3 states that you requested counseling from an approved agency, but were unable to obtain services within 7 days of the request and you are filing for an extension of time to file the Certificate of Credit Counseling due to exigent circumstances.  This means that unusual things happened that prevented you from getting the credit counseling before you filed the petition.  You must attach a separate sheet explaining what efforts you made to obtain the briefing, why you were unable to obtain it before you filed for bankruptcy, and what exigent circumstances required you to file this case.

• Box 4 states that you are not required to receive credit counseling because of incapacity or disability (defined in 11 U.S.C. §109(h)(4)), or active military duty in a military combat zone.If you believe you are not required to receive a briefing about credit counseling, you must file a motion for a waiver of the credit counseling requirement with the court.

Click here to locate an approved Credit Counseling Agency.

Click here for more information about Credit Counseling.

Note: Credit Counseling is not the same as the Personal Financial Management Course (Debtor Education).  The Personal Financial Management Course is required AFTER the petition is filed and must be completed before receiving a discharge.  See question "What is the Personal Financial Management Course (Debtor Education)?" for more information.