Most people who file bankruptcy in Illinois must take part in mandatory credit counseling. The only exceptions are service members on active duty in a combat zone and filers who are so physically or mentally ill that they cannot take part in the counseling. This requirement must be met prior to making your petition. There is another financial counseling session that is required before your case is discharged. Before signing up, filers should know that Credit Counceling Effingham IL companies offer involves a fee in addition to the bankruptcy filing fee.The first counseling session is designed to help people decide whether bankruptcy is the best option for their financial situation. There are other options available, such as credit counseling and debt settlement and pre-bankruptcy counseling helps people who may not be aware of them understand the types of services that may help them out of their financial troubles.
The counseling can be completed online, over the phone or in person. These options make the counseling convenient for everyone. During this counseling, you may decide that you have enough income to work out a payment plan with your creditors. As the counselor helps you prepare a budget, it may become apparent that you have more money than you realized and by reallocating some of your funds, you can make payments on your bills. Though you are not obligated to make an agreement or accept the counselor’s advice, if you choose to, the agreement can be presented to the bankruptcy court along with your certificate of completion.
Many bankruptcy filers are very deep in debt or have lost a significant source of income, making payment arrangements out of the question. However, in some cases, the bankruptcy courts may force a person who wants a Chapter 7 bankruptcy to opt for a Chapter 13 plan because the credit counselor was able to show that the filer is able to pay their bills if they can reorganize them.