Under the new bankruptcy law, you will not be allowed to file unless you have, during the 180-day period before the date you file the petition, received a credit counseling session from an approved nonprofit budget and credit counseling agency by either an individual or group (including a session conducted over the telephone or the Internet) that outlines the alternatives to bankruptcy and must help you perform a budget analysis. 

The credit counseling agency should also discuss with you the "means test" and how the test will affect your filing bankruptcy. The average length of the counseling session is 90 minutes.  The counseling can be held in person, over the phone, or on the internet.

Exemptions to the Requirement

The counseling requirement will not apply to everyone.  If you are a debtor that lives in a district where the United States Trustees (or the bankruptcy administrator, if any) decide that the approved counseling agencies will not be able to handle the number of filers.

Also, the requirement for credit counseling may not apply to someone who submits to the court a certification that describes some critical circumstances that would merit a waiver of the counseling requirements or states that the person wishing to file bankruptcy has requested credit counseling services from an approved counseling agency, but was unable to obtain the services during the 5-day period beginning on the date on which the filer made the request, and is satisfactory to the court.

The requirement for credit counseling will also not apply to someone whom the court determines, after notice and a hearing, is unable to complete those requirements because of incapacity, disability, or active military duty in a military combat zone. 

Credit Counseling Session Fees

According to the new bankruptcy law, any fees, contributions, or payments received from the client for the counseling services must be reasonable in amount, and the counseling agency must provide the counseling services without regard to the client's ability to pay for the counseling services.  The counseling agency can not withhold the certificate of counseling because of your inability to pay for the services.