Credit Counseling is Required Before You File for Bankruptcy

Credit counseling is required through a government-approved program before bankruptcy can be filed. You may also have to complete a financial management education program. Proof of completion must be filed before the bankruptcy will be approved or debt discharged. Tax Returns Must Be Produced Before You FileBecause of the new requirements with the Chapter 7 means test, you are now required to produce your tax returns in order to be able to file for Chapter 7 or Chapter 13 bankruptcy. This means if you have not filed taxes, you must do so before you file for bankruptcy. This can pose a problem for some who owe back taxes, since these back taxes are not generally dischargeable in bankruptcy. Thus, you may find yourself wiping out some of your debts with the bankruptcy action but simultaneously getting stuck with a whole new problem of owing money to the IRS. If you find yourself in this situation, making an offer-in-compromise separately with the IRS to settle your debt may be your best bet. Getting Help With Your Bankruptcy FilingThe bankruptcy code and laws in the US are complex and you should not try to go through a bankruptcy filing without legal help. An experienced attorney can help those in bankruptcy to understand both their rights and their obligations under the new bankruptcy law.