The simple answer is this: because it’s the law. In order to file for Chapter 7 or Chapter 13 bankruptcy protection in the State of New Jersey, or anywhere in the US, you must go through a credit counseling session. These sessions are offered by non-profit agencies; the purpose is to determine if there is a way for you to avoid bankruptcy through alternative means of paying down your debt.
When you are in over your head financially, bankruptcy may seem like the only alternative you have. And, sometimes, it’s the quickest way to stop the collection harassment and clear the slate so you can start to rebuild your credit. However, there may be a way to create a more informal plan that can help you get back on your feet while not having to go through the arduous bankruptcy process.
When you work with the counseling agency, whether in person, online or by phone, its associates will collect information and prepare a budget based on your income and expenses. They will take your debt into consideration and see if there is a way to avoid bankruptcy. Even if it’s quite obvious from the numbers that bankruptcy is your best option, you still need to go through the credit counseling session.
If you have questions about bankruptcy, whether you are still looking for a way around filing for Chapter 7 or 13, or if you know you want to file for bankruptcy protection, contact the Law Offices of Joel R. Spivack. He has been guiding families in Cherry Hill, NJ and the surrounding communities through the bankruptcy process for more than 20 years. He will help your family, too.