Haines & Krieger Attorneys at Law

If you've ever looked for bankruptcy information in Las Vegas, you likely have come across the term "credit counseling."  But the question is, what does it mean?

If you've felt confused, you're not alone.  The term credit counseling gets used in different ways that affect anyone who has ever contemplated filing bankruptcy in Las Vegas or anywhere else. 

Let's take a moment and go over the different uses.

First, there is the credit counseling course that is required under the new bankruptcy laws that were passed in 2005.  This kind of credit counseling, in other words, is a short, mandatory course that all individuals must take before they may file for bankruptcy, whether Chapter 7 or Chapter 13.  The course is typically no more than 2 hours long.  You can take it over the phone or on the internet.  And you can take it from any accredited provider.  The website for the Office of the U.S. Trustee has a full list of accredited credit counseling course providers in Nevada.  Of course, any good bankruptcy attorney in Las Vegas (such as Haines & Krieger) can provide you with trustworthy credit counseling course options as well.

But that's not all there is to know about "credit counseling."

"Credit counseling" is also the word used to describe companies that provide "credit counseling services."  You are likely familiar with these companies.  They advertise everywhere.  Promise to help you get out of debt or consolidate your debt.  Tell you that they're non-profit companies.  Maybe include a nice photo of a helpful man in a suit and tie explaining everything to a nice couple.

Credit counseling agencies are, indeed, non-profit entities.  However, you better believe that they're making a profit.  They require a payment in advance and they also typically earn revenue from the banks and credit card companies for whom they are essentially working.  The payment is often a percentage of the money that a client pays back to the bank.

Credit counseling agencies typically can only help with credit card debt.  And they certainly cannot provide Las Vegas bankruptcy help if that's what you really need.

Adding to the confusion with the term "credit counseling," many of the accredited providers for the credit counseling course are, in fact, credit counseling agencies.  But don't be fooled.  There are two very different kinds of credit counseling.

One is the kind you have to do if you want to file for bankruptcy.  The other is the kind you should probably avoid.

If you're considering filing for bankruptcy in Las Vegas, please contact us for a free initial consultation to learn all you need to know about credit counseling, Chapter 7 bankruptcy, Chapter 13 bankruptcy, debt consolidation, foreclosure, loan modification and all of your other options for dealing with your debt.