Under the new laws, before filing for bankruptcy under either Chapter 7 or Chapter 13, you must complete credit counseling with an agency approved by the United States Trustee’s office. The reason for this counseling is to give you an idea of whether you really need to file for bankruptcy or whether an informal repayment plan would get you back on track. To find an approved agency in your area, go to the Trustee’s website, www.usdoj.gov/ust, and click Credit Counseling and Debtor Education.

Counseling is required even if you know that a repayment plan isn’t feasible or you are facing debts that you find unfair and don’t wish to pay. You are required only to participate, not necessarily agree to any repayment plan the agency proposes. If the agency does come up with a repayment plan, however, you will have to present it to the court, along with a certificate showing that you completed the counseling, before you can file for bankruptcy.

Near the end of your bankruptcy case, you’ll have to attend another counseling session, this time to learn personal financial management. Once you submit proof to the court that you have fulfilled this requirement can you get a bankruptcy discharge wiping out your debts.