What is the credit counseling requirement for bankruptcy?

Under 11 U.S.C. Section 109(h), every individual filing bankruptcy must complete a credit counseling course from an approved provider within 180 days before filing. The course reviews your financial situation, discusses alternatives to bankruptcy, and helps you create a budget. You will receive a certificate that must be filed with your petition.

How much does credit counseling cost?

Most approved credit counseling agencies charge between $10 and $50. Some agencies offer free counseling to filers who cannot pay. The fee covers the counseling session and the certificate you need to file with the court.

How long does the credit counseling session take?

The credit counseling session typically takes 60 to 90 minutes. It can be completed online, by phone, or in person. You will discuss your income, expenses, debts, and whether there are alternatives to bankruptcy that might work for your situation.

Can I file bankruptcy without credit counseling?

No. The court will not accept your bankruptcy petition without proof that you completed credit counseling. In rare emergency situations, you may be able to file first and complete counseling within 30 days, but this requires a motion to the court explaining the exigent circumstances.

Is credit counseling the same as debtor education?

No. Credit counseling is the pre-filing requirement. Debtor education (financial management course) is a separate course you must complete after filing, before receiving your discharge. You need both.

Kansas City Bankruptcy Credit Counseling -- Required Pre-Filing Course Guide

What Is Required

Before you can file any bankruptcy case in Kansas City -- Chapter 7, Chapter 13, or Chapter 11 -- you must complete a credit counseling session with an agency approved by the U.S. Trustee Program. This is federal law under 11 U.S.C. Section 109(h).

Quick Facts

When: Within 180 days before filing your petition
Duration: 60-90 minutes
Cost: $10-$50 (fee waivers available)
Format: Online, phone, or in-person
Result: Certificate filed with your petition (Official Form 101, Exhibit D)

What the Session Covers

Review of your current financial situation (income, expenses, debts)
Discussion of alternatives to bankruptcy (debt management plans, negotiation)
Help creating a personal budget
Information about available community resources
Overview of what bankruptcy involves

The counselor is not trying to talk you out of bankruptcy. The session is designed to make sure you understand all your options before proceeding. Most people who complete counseling proceed with filing.

Approved Providers for Kansas City

District	Counties	Approved Provider List
Western District of Missouri	Jackson, Clay, Platte, Cass, Ray, Lafayette	USTP Credit Counseling -- Missouri
District of Kansas	Johnson, Wyandotte, Leavenworth, Douglas	USTP Credit Counseling -- Kansas

This Is NOT the Same as Debtor Education

Common mistake: There are two required courses, not one.

Credit counseling (this page) -- completed before filing
Debtor education -- completed after filing, before discharge

You need certificates from both. They are different courses, usually from different providers.

What If You Can't Afford the Fee?

Many approved agencies offer reduced fees or fee waivers for filers whose income is below 150% of the federal poverty line. Ask the provider about their hardship policy before enrolling. You can also check with local legal aid:

Legal Aid of Western Missouri: (816) 474-6750
Kansas Legal Services: (800) 723-6953

What If You Already Filed Without Counseling?

The court will not process your petition without a credit counseling certificate. In genuine emergencies, you can file a motion for temporary waiver under 11 U.S.C. Section 109(h)(3), but you must complete counseling within 30 days. This requires showing "exigent circumstances" that prevented you from getting counseling before filing.

Free Bankruptcy Resources

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Debtor Education Course Guide | Full Cost Breakdown | What to Expect