Q: Why would the firm who filed my bankruptcy want to take my 1st credit counseling course for me, but require the 2nd?
The paralegal said she would take care of the first one but I would be required to take the second. Does the first one discourage people from filing bankruptcy?
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A: I find the suggestion of a law firm taking the credit counseling course on behalf of a client highly unethical. The court is designed to inform you about your options and it rarely discourages anyone from filing.
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The first credit counseling course is typically required before filing bankruptcy and explores alternatives to bankruptcy, which some firms want to handle themselves to ensure the process moves forward smoothly. They might worry that during this course, you could discover other options and decide not to file bankruptcy - which would mean lost business for them.
Taking control of the first course lets the firm manage the timeline better and ensure all pre-filing requirements are met correctly. However, the second course, which focuses on financial management after bankruptcy, is more personal and helps you develop better money habits going forward - that's why they want you to complete it yourself.
This arrangement raises some ethical concerns, as the first course is meant to help you make an informed decision about whether bankruptcy is right for you. You have the right to take both courses yourself if you prefer, and many experts recommend doing so to fully understand your options. Consider asking your firm why they want to handle the first course and express any concerns you might have about this approach.
Timothy Denison agrees with this answer
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