An individual must receive credit counseling from an approved nonprofit agency during the 180 days before filing a bankruptcy petition. If you want to meet this requirement and keep your case from being dismissed:

1. Do not submit a bankruptcy petition 181 days after credit counseling;
2. Do not skip credit counseling;
3. Do not plan to complete credit counseling after filing your petition.

The only exception to the requirement of completing credit counseling before qualifying for bankruptcy protection is if you can satisfy the court that you have exigent circumstances and the court approves a waiver.

If you fail to meet the credit counseling requirement, then you remain vulnerable to your creditors (and any time or money you spent preparing the petition would be a waste). The Bankruptcy Court for the Southern District of Texas has previously considered this provision of the bankruptcy code and has determined that cases with this flaw should be dismissed – leaving the petitioner with no bankruptcy protection.

This is an example of one of the mistakes a Woodlands Bankruptcy Attorney can help you avoid. When you need bankruptcy protection, get it done right the first time.

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