What Is Bankruptcy Counseling? What to Expect

Credit Counseling for Bankruptcy is a crucial step in the process of filing for bankruptcy. It helps you understand the financial situation, explore alternative options, and make informed decisions. If you are in this situation, it is important to understand what bankruptcy counseling is, its purpose, and what you can expect during the process.

What is Bankruptcy Counseling?

Bankruptcy counseling is a mandatory session required by the U.S. government for individuals considering filing for bankruptcy.

The main objective of this counseling is to educate individuals about the bankruptcy process, evaluate their financial situation, and identify possible alternatives to bankruptcy.

The counseling session is conducted by a certified credit counselor from an approved agency such as American Consumer Credit Counseling (ACCC). The counselor will help you assess your financial situation, discuss your options, and provide valuable advice to manage your finances better in the future.

Purpose of Bankruptcy Counseling

Bankruptcy counseling serves several purposes:

  1. Evaluate your financial situation: Your counselor will help you review your income, expenses, assets, and debts to determine your financial condition.
  2. Explore alternatives to bankruptcy: Bankruptcy should be the last resort for dealing with financial problems. Your counselor will discuss other options that may be available to you, such as debt management plans or debt settlement.
  3. Educate about the bankruptcy process: The counseling session will provide you with a thorough understanding of the bankruptcy process, its consequences, and your responsibilities during and after the process.
  4. Develop a personalized budget plan: Your counselor will help you create a feasible budget plan to manage your finances better and avoid future financial difficulties.


Credit Counseling for bankruptcy is a legal requirement and American Consumer Credit Counseling is an approved agency to help you though that process.

Bankruptcy Counseling, What to Expect – Bankruptcy counseling is a crucial step in the process of filing for bankruptcy.

What to Expect During Bankruptcy Counseling

  • Duration: A typical bankruptcy counseling session lasts between 60 to 90 minutes. The session can be conducted in person, over the phone, or through an online platform.
  • Documentation: Be prepared to provide your financial documents, such as pay stubs, tax returns, bank statements, credit card bills, and a list of monthly expenses.
  • Financial analysis: Your counselor will review your financial documents and discuss your current financial situation, including your income, expenses, assets, and debts.
  • Discussion of alternatives: The counselor will present alternative options to bankruptcy and discuss the pros and cons of each.
  • Education on bankruptcy: The counselor will explain the bankruptcy process, types of bankruptcy, and the consequences of filing for bankruptcy.
  • Budget planning: The counselor will help you develop a personalized budget plan to manage your finances more effectively in the future.
  • Completion certificate: After completing the counseling session, you will receive a certificate of completion. This certificate is required when you file for bankruptcy.

Bankruptcy counseling is an essential step in the bankruptcy process that helps individuals make informed decisions about their financial future. By understanding what bankruptcy counseling entails and what to expect, you can be better prepared for your counseling session and take control of your financial situation. Remember that seeking professional help is always beneficial when dealing with financial difficulties.

Key Takeaways

  • Bankruptcy counseling is mandatory and educates individuals about the process and alternatives.

  • Certified credit counselors guide the session and provide valuable financial advice.

  • The counseling aims to evaluate finances, explore options, and create a budget plan.

  • Expect a 60-90 minute session covering financial review, alternatives, and process explanation.

  • A completion certificate is required for filing bankruptcy..

Bankruptcy Counseling with ACCC

ACCC is approved by the Department of Justice to provide the mandated pre-filing bankruptcy counseling session that will analyze your current financial condition to enable you and your legal counsel to make well-informed decisions. ACCC is also approved by the Department of Justice to provide the post-bankruptcy debtor education course that is necessary to have your bankruptcy discharged.

5 Reasons to Use American Consumer Credit Counseling

  1. Approved* by Executive Office for U.S. Trustees (EOUST) to provide the required counseling
  2. Easy to follow on-demand financial counseling at your convenience
  3. Quick Certificate Turnaround
  4. We call your attorney to make sure they receive your certificate – so you don’t have to worry!
  5. Trained and trusted counselors that provide superior service

Pre-filing Online Counseling



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Post-bankruptcy Online Counseling



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Approved to issue certificates in compliance with the Bankruptcy Code. Approval does not endorse or assure the quality of an Agency’s services.