The Law Office of Kim Covington

Call For A Free 1-Hour Consultation
541-393-2790 | 800-673-1891

Please Ask For Kim Directly When Scheduling An Appointment

What is credit counseling and how might it help you?

In last week’s post, we discussed the requirements you must meet in qualifying for a Chapter 7 bankruptcy. One of them involved undergoing credit counseling. It may help you and other Eugene residents to understand how credit counseling works.

American Consumer Credit Counseling describes this as a financial service that may help you learn how to pay off your debts and avoid future debt in years to come. A significant part of your success after a bankruptcy involves understanding how to manage your finances. During credit counseling, you will work with the agency to develop an effective payment strategy for your debt and household expenses, as well as learn how to afford your expenses and pay them on time.

Credit counseling differs from debt negotiation and consolidation agencies in that the latter is often “for profit” and may be costly and damaging to your credit. Why do you need to undergo credit counseling as a requirement for bankruptcy? Bankruptcy courts want you to develop the tools to succeed and to avoid financial issues and repeat bankruptcy in the future. It may seem like an inconvenience to attend mandatory credit counseling sessions when you are already stressed and worried about your financial future; however, you may instead look at credit counseling as an invaluable opportunity to become educated and informed about managing your finances.

During a bankruptcy, credit counseling is just one of several steps you will take on your path to starting over fresh. This information should not replace the advice of a lawyer.

No Comments

Leave a comment
Comment Information
email us for a response

Learn More About Your Fresh Financial Start

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

The Law Office of Kim Covington is a debt relief agency, and I have helped families, individuals and small businesses, file for bankruptcy relief under the U.S. Bankruptcy Code, for over 19 years.

The Law Office of Kim Covington

The Law Office of Kim Covington
1445 Willamette Street, Suite 9
Eugene, OR 97401

Toll Free: 800-673-1891
Phone: 541-393-2790
Fax: 541-344-6466
Eugene Law Office Map

P: 541-393-2790

T: 800-673-1891

F: 541-344-6466