Before people file for Chapter 7, they usually have to attend credit counseling. As people look for a counselor, there are several factors they should consider. 

A credit counselor can help people understand all their financial options. According to Nerd Wallet, these counselors may have different specializations, and people need to make sure they work with one who has experience in bankruptcy counseling. 

Set up an interview

Credit counselors should offer a free phone call or meeting to prospective clients. During this meeting, people should ask questions about a counselor’s experience and qualifications. Does this person have accreditation through a recognized agency? Do people feel comfortable talking to the counselor about their finances? The counselor should also help people understand exactly what the counseling process will look like and the kind of services they will receive. 

Ask about payment

People who are filing for Chapter 7 may have concerns about the cost of credit counseling. According to the Federal Trade Commission, people should ask for a breakdown of the cost of counseling. How many sessions will they need to attend and how much will each session cost? Does the counselor charge a flat fee or by the hour? 

Some people may not be able to afford credit counseling. In this situation, they should ask if counselors will work with them pro bono. If counselors cannot do this, people should consider a different professional. Additionally, many people may want to make sure that their financial information remains private. They should ask what steps counselors take to keep this information confidential. 

Credit counseling is an essential step in the bankruptcy process. Working with the right professional can help people understand how bankruptcy will affect their finances.