Before you can file for Chapter 7 or Chapter 13 bankruptcy, federal law requires you to complete a credit counseling course. This is not optional, and skipping it or getting the timing wrong can mean your case is dismissed before it even gets started.
The requirement trips people up more often than it should, mostly because the rules around timing and approved providers are more specific than they first appear. This guide covers exactly what the credit counseling requirement involves, the 180-day window you have to work within, how to find a properly approved agency, and what happens if you get it wrong.
Under 11 U.S.C. Section 109(h)(1), an individual cannot be a debtor in bankruptcy unless they have received a briefing from an approved nonprofit budget and credit counseling agency during the 180-day period ending on the date the petition is filed. This requirement applies whether you are filing Chapter 7 or Chapter 13, and it was added to the Bankruptcy Code by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.
The briefing can be conducted in person, by phone, or online, and it must outline the credit counseling opportunities available to you and assist you in performing a budget analysis. Once completed, the agency issues a certificate, and that certificate must be filed with the court along with your bankruptcy petition.
Timing matters more than most filers expect. The counseling must be completed within the 180 days immediately before you file, and if it is too old, the certificate will not satisfy the requirement, which can result in your case being dismissed. Some courts also hold that counseling completed on the same day you file does not count, since the statute requires it to precede the filing within that window.
Only credit counseling agencies approved by the U.S. Trustee Program under 11 U.S.C. Section 111 can issue a certificate that satisfies this requirement. A counseling session, even a thorough one, from an agency that is not on the approved list will not count, and discovering this after the fact can derail a filing at the worst possible time.
The U.S. Trustee Program maintains the official list of approved agencies by state and judicial district at justice.gov/ust. Utah filers can look up agencies approved to serve the District of Utah directly on that site. Approved agencies can typically provide the briefing online, by phone, or in person, and many offer services in languages other than English. If a provider cannot be found on the official list, or claims approval without appearing there, that is a clear warning sign.
The briefing is meant to be more than a formality. During the session, an approved counselor will typically:
The session generally takes an hour or less, and cost is typically modest, often in the range of most other required bankruptcy filing expenses, with many approved agencies offering fee waivers for filers who cannot afford the standard fee.
The law allows for a small number of exceptions to completing counseling before filing, and they apply rarely. Under 11 U.S.C. Section 109(h)(2), a debtor may complete counseling after filing if they requested it from an approved agency but could not obtain services within 7 days of the request, certain other conditions are met, and the court is satisfied with the certification. This exemption does not extend indefinitely. It ends once the requirement is met, and in no case can it apply more than 30 days after filing, though a court may grant an additional 15 days for cause.
A separate exception under Section 109(h)(4) applies where the court determines, after notice and a hearing, that the debtor is unable to complete the requirement because of incapacity, disability, or active military duty in a combat zone. Both exceptions require court involvement rather than a filer’s own judgment call, so anyone who believes they might qualify should raise it with their attorney before filing rather than assuming it applies.
Filing without valid, timely credit counseling from an approved agency generally means you are not eligible to be a debtor under the Bankruptcy Code for that case. Courts have dismissed cases specifically for this reason, and a dismissal at the outset wastes the filing fee, resets the clock, and can complicate a refiling if creditors have taken action in the meantime. Our guide to avoiding bankruptcy dismissal covers other procedural pitfalls that can derail a case after filing, which pairs with this pre-filing requirement to cover the full timeline.
Credit counseling is often the very first concrete step in the bankruptcy process, which means it is also an early opportunity to get organized. Many filers use the session to start gathering the financial documentation they will need regardless, since our Utah bankruptcy means test and the rest of the filing process both depend on having accurate income and expense information on hand. Completing counseling early in your timeline, rather than as a last-minute step, also protects against the risk of the 180-day window closing before your attorney has finished preparing your petition.
Get the Timing and the Paperwork Right
Credit counseling looks like a simple box to check, but the timing rules and approved-provider requirement trip up more filers than you would expect. At Blue Bee Bankruptcy Law, we make sure this step, and every other requirement in your case, is handled correctly from day one. Call (801) 285-0980 to schedule a consultation.
Yes, for individual filers under 11 U.S.C. Section 109(h)(1), whether filing Chapter 7 or Chapter 13. You must complete the briefing from an approved agency within the 180 days before filing, with limited exceptions for emergency situations or incapacity.
Credit counseling happens before you file and is a condition of eligibility to be a debtor. Debtor education, also called the personal financial management course, happens after you file and is a condition of receiving your discharge. They are separate requirements from separate categories of approved providers.
The U.S. Trustee Program maintains the official approved agency list by state and judicial district at justice.gov/ust. Only agencies on that list can issue a certificate that satisfies the requirement for Utah filers.
It will not satisfy the requirement. The briefing must fall within the 180-day period ending on your filing date. If your certificate is too old, you will need to complete counseling again closer to your actual filing date.
Yes. The briefing may be conducted in person, by telephone, or over the internet, as long as it is provided by an agency approved under 11 U.S.C. Section 111.
You generally will not be eligible to be a debtor under the Bankruptcy Code, and your case can be dismissed. A narrow exception exists if you requested counseling but could not obtain it within 7 days, subject to court approval and strict time limits.
Limited exceptions exist under 11 U.S.C. Section 109(h)(2) for debtors who requested counseling but could not obtain it within 7 days, and under Section 109(h)(4) for incapacity, disability, or active military duty in a combat zone. Both require the court’s involvement and are not something a filer can decide on their own.
Costs are generally modest and vary by agency. Many approved agencies offer reduced fees or fee waivers for filers who cannot afford the standard cost, so it is worth asking directly if cost is a concern.
Yes. The statute requires the briefing to include assistance with a budget analysis, not just general information about bankruptcy. This is a required component of a compliant session under Section 109(h)(1).
No. Only agencies approved by the U.S. Trustee Program under 11 U.S.C. Section 111 can issue a certificate that satisfies the requirement. Verifying an agency against the official justice.gov list before completing counseling is the safest way to avoid using an unapproved provider.
