Debt Management Plans from Credit Counseling Companies – Government Requires Certificate Before Filing Bankruptcy
Posted on | May 21, 2010 | Comments Off
Debt management plans from credit counseling companies have gained in popularity over the last several years. With Americans greatly struggling with bankruptcy and personal finances it is important to note that the government requires a credit counseling certificate before filing bankruptcy in this country.
A certificate does not include a debt management plan. To get a credit counseling certificate you will need to go through a 60 to 90 minute session that includes a review of your personal finances. During this session of credit counseling may suggest a debt management plan to help you get out of debt without filing bankruptcy.
It is important to note that a debt management plan is not mandatory and you should not feel that this is something that you have to pay a credit counseling company for. It is up to your discretion whether or not a debt management plan is right for your current financial situation.
In essence, a debt management plan is a separate bank account is funded by you in which the credit counseling company will correctly pay off your debts. You’ll pay a fee to the credit counseling company and they will make certain that your money is going to the right places.
Author: Tiffany Mann
Tags: Credit Counseling > debt management plans > government bankruptcy > government credit counseling > government debt management > government debt plans > government plans