Due to the provisions of the 2005 bankruptcy reform act, new bankruptcy petitioners are required to attend credit counseling within 180 days before their paperwork is submitted to a bankruptcy court. In addition, the debtor must attend a post-bankruptcy counseling session and provide proof of attendance before his or her debts can be legally discharged.

During the pre-bankruptcy counseling session, debtors will be asked to draw up a budget of their current expenses and also what their budgets will look like after their debts are discharged. The counselor will provide guidance about how to better manage expenses post-bankruptcy. After the session is completed, the debtor will receive a certificate which indicates his or her participation in the mandatory course. It is up to the bankruptcy petitioner to locate a credit counseling center to complete this requirement. It can be completed in person, online or over the telephone.

The post-filing course is quite similar to the one taken prior to the bankruptcy filing, but it is still necessary in order to get a discharge of debts. The consumer should follow the same procedures outlined above and make certain to get a certificate which states that he or she completed the requirement.