Credit Counseling in Nevada
Debt management may be difficult for you. It may seem like instead of settling your financial accountabilities to creditors, the debts pile up more for a lot of reasons. Being in this situation is never easy and may have caused you sleepless nights. You are hit with the reality of wanting to make payments but you are short on your finances. Losing balance between expenditures and income can worsen your current state.
You striving to get out of this dilemma and searching for options is already a step towards freeing yourself from debt. Bankruptcy might be the answer to your financial issues so you can get a fresh start. If you qualify for Chapter 7 bankruptcy, you will be able to get rid of most of your debts and be back on your feet.
What Do I Need to Do Before Filing for Bankruptcy in Nevada?
Aside from preparing all your documents to prove that you are in a state of financial crisis, and of course, filling out and completing forms required to file for Chapter 7 bankruptcy, you need to take a credit counseling course in Nevada.
Whether you are filing Chapter 7 or Chapter 13 bankruptcy on your own or with the help of your attorney, the credit counseling course is something that you are obligated to go through.
What is Credit Counseling?
Credit counseling is a requirement before you file for bankruptcy. This is a short course that you need to take from accredited and certified credit counseling agencies in Nevada. The course focuses more on debt-relief options and you should undergo credit counseling before filing for bankruptcy.
The counseling normally takes 40-60 minutes, talking with a credit counselor. Information obtained from you are dealt with utmost confidentiality. Most counseling providers offer the course by phone or online, and some provide it in-person.
What is Credit Counseling for?
Besides serving as a requirement before filing for bankruptcy, credit counseling has the following purposes:
· educate you on the possible causes of your excess debt;
· offer you feasible solutions and alternatives to eliminate your debt; and
· guide you on budgeting, loans and money management.
Credit counseling may shed light on your current financial status, however, there are things it cannot do, such as:
· purchase your debt or obligation;
· lend you money or provide you credit;
· work as collection agency; and
· provide credit insurance.
What Happens During Credit Counseling?
Once you have identified the credit counseling agency you would like to work with you, you will both get to review your current financial situation. You need to make the following ready for the counseling:
· your contact information;
· information about all your property;
· your monthly income;
· your existing debts;
· a detailed list of your monthly expenses such as groceries, utilities, entertainment, etc.;
· your current credit card balance; and
· your other financial obligations.
Once you and your credit counselor have reviewed all the data you presented and made available, your credit counselor can provide you the support that you need. The support extended are listed below but the scope may be more than what is on the list:
· finding a solution that will suit you best to keep you back on your financial track (debt repayment strategies);
· teaching you on how to manage your money; and
· suggesting plans so you do not incur more debt.
What Happens After You Completed Credit Counseling?
After course completion, the credit counseling provider will email or mail you your certificate. This certificate will have to be presented to the court together with the other forms you filled in to file for bankruptcy.
The certificate issued to you expires after 180 days. You should file for bankruptcy within 6 months or you will have to take the course again.
Who are Exempted from Credit Counseling in Nevada?
You are exempted from taking the credit counseling in Nevada if:
· you are on active military duty in a combat zone; and/or
· you are physically or mentally impaired to an extent that you cannot fulfill the credit counseling requirement.
How to Look for a Good Credit Counseling Provider?
If you will subject yourself to credit counseling, you want to make sure that you will work with someone whom you can trust and will surely deliver the promise of easing your debt. Getting a good credit counseling provider may again add up to the stress.
Here are a few tips on how to get a good credit counseling provider:
· do a research of different credit counseling providers in Nevada;
· the counseling provider should be licensed and accredited by the State of Nevada;
· have a talk with the different counseling providers without giving details about your financial situation;
· request for free educational materials to be sent to you; and/or
· if you have a counseling provider in mind, check the legitimacy of the said provider via organizations which they might belong to: (1) National Foundation for Credit Counseling (NFCC); or (2) Financial Counseling Association of America (FCAA).
Freedom Law is Here to Help
Your bankruptcy attorney will also be a great help in explaining to you the importance of credit counseling, and why you have to go through it if you are filing for bankruptcy. Bankruptcy filing does not hinder you from filing it yourself, but things will be a lot easier if you have an expert by your side that will walk you through the details and the process.
If you would like to find out how we can help you, please request a call-back by submitting a short online form. All initial consultations are free and confidential.