When you want to file for bankruptcy, there are often bankruptcy counseling services that are required by the court before you can file. Generally, at least the first session of credit counseling is required before filing. Many people go through bankruptcy credit counseling before they have an appointment with an attorney for bankruptcy.
This can help them to understand the process much better.
Though people who will undergo bankruptcy, take these credit counseling courses and meet with credit counselors, that is not a requirement for undergoing this counseling. Anyone who has a lot of debt may be interested in this counseling to try to change the amount of debt they have. The credit counselor will go over many factors with you, including your debts, income, assets, and your budget.
The counselor will let you know where there are problems and what kind of budget you should realistically have. They can then let you know what is available in your area to get your debt reduced. The counselor talks to people about the problems behind their debts and how they can change course to be under less debt in the future for a much better financial outlook in store.