Credit Counseling - A Necessary Requirement of Personal Bankruptcy

Credit counseling can be a good alternative forcredit counseling from an approved agency.
individuals considering bankruptcy or anyone strugglingShould debtors choose to obtain credit counseling from
to make financial ends meets. Credit counseling is anagencies outside the Trustee Program, financial
excellent choice for young people venturing out onexperts recommend conducting research prior to
their own or newly married couples who desire tosigning any contracts. One of the most reliable
start off with strong financial traction.resources for verifying a company's credentials is the
Credit counseling is offered in most major U.S. citiesBetter Business Bureau. Not only does the BBB
and populated towns. Although most agencies chargeprovide corporate information, they also verify if a
a fee for counseling services, there are non-profitcompany is in good standing or has complaints filed
counseling centers that offer no- or low-cost servicesagainst them.
to qualified participants.MyMoney.gov is another reputable source for credit
With today's economic recession and high rate ofcounseling. This program was established by the U.S.
unemployment many Americans are facing financialFinancial Literacy and Education Commission.
cataclysm. Many are tempted to file bankruptcy toMyMoney.gov offers a free "My Money" toolkit which
avoid foreclosure or end creditor harassment.provides brochures, pamphlets and a wide array of
Filing bankruptcy should always be the final choicemoney management information and financial
when trying to reorganize debts. Not only doesresources.
bankruptcy remain on credit reports for up to tenLast, but not least, public libraries are an excellent
years, it can prevent borrowers from obtaining credit insource for obtaining financial information. Libraries
the future and may even affect their ability to findcontain an abundance of books, videos and home
suitable employment.study courses on a wide range of money
In 2005, Congress enacted the Bankruptcy Abusemanagement topics including household budgeting,
Prevention and Consumer Protection Act. BAPCPAeliminating credit card debt and personal investing
requires all debtors to undergo credit counseling prior tostrategies.
obtaining bankruptcy approval.Gaining control of finances is very empowering.
The Department of Justice established the U.S.Anyone who desires to overcome credit challenges
Trustee Program which provides a list of approvedcan achieve their goals by taking time to become
credit counseling agencies across the nation. Expertseducated about money management. Take time to
recommend using one of the Trustee Program'slearn strategies that can help you pay off credit cards,
approved agencies prior to filing bankruptcy. With theirreduce or eliminate debts, build an investment portfolio
assistance, debtors might be able to avoid bankruptcyand become proficient in finances.
altogether. If not, they will have obtained the required