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Home >> Bankruptcy
Payment for Counseling Services
I am not able to pay for the credit counseling services required by the Bankruptcy Abuse Prevention and Consumer Protection
Act (BAPCPA). What happens now? Can I still file for bankruptcy?
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 Yes you can. Under the BAPCPA, the counseling agency may charge you a reasonable fee for the counseling services. If you cannot pay for the counseling services, the agency must provide them to you free or at a reduced rate according to a 'sliding scale'. If your income is less than a certain amount, you can obtain the services for a reduced rate or will not have to pay for them at all. While circumstances vary, a 'reasonable' fee for most individuals would be $50, according to the Office of the US Trustee. So you may have to pay somewhere between $0 and $50 for counseling services. You may also in some circumstances be allowed an exception to the counseling requirement, if 1) you have to file for bankruptcy immediately and cannot wait for counseling (for example, to prevent wage garnishments) and/or 2) you could not obtain counseling within 5 days of filing for bankruptcy. However, since counseling is available in most cases over the phone or online, failure to obtain counseling is rarely an exception. If you cannot get the counseling, you must certify this fact to the court for an extension (though you must usually complete the counseling within 30 days).
Published on BankingQuestions.com 1/13/09
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