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What is the credit counseling rule for Chapter 13 bankruptcy?

Personal bankruptcy is often the last resort for Tennessee residents who have found themselves dealing with insurmountable debts. After investigating debt relief options and trying to manage debts on their own, they may turn to bankruptcy attorneys to learn more about how they may break the cycle of financial hardship in their lives.

For those who do decide to pursue bankruptcy, preliminary requirements in the process may offer them means of taking care of their finances without actually finishing their bankruptcy filings.

That is because credit counseling is required for individuals who choose to pursue Chapter 13 bankruptcy. Credit counseling is a service that requires a debtor to provide financial information to a credit counselor who then assesses that data. Based on the data they receive the credit counselor may give the debtor options for getting out of debt that do not include bankruptcy.

Bankruptcy can be a difficult process and as readers of this legal blog know it can also have long-term consequences on the financial health of filers. The ability of a debtor to manage their loans and obligations without getting the courts involved may help them avoid the problems some individuals face once their bankruptcy proceedings end in discharge.

Credit counseling must be completed with approved organizations and can be useful to some who can remedy their debts without finishing the Chapter 13 bankruptcy process. There are other preliminary requirements that personal bankruptcy filers must complete and individuals who want to learn more about Chapter 13 bankruptcy are encouraged to reach out to attorneys they know and trust.

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Kenneth C. Rannick, P.C.
4416 Brainerd Road
Chattanooga, TN 37411

Phone: 423-624-4002
Toll Free: 800-257-7594
Fax: 423-624-0509
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