Bankruptcy Credit Counseling Requirement may be Waived by Georgia Court

Before a debtor can file Chapter 7 or Chapter 13 bankruptcy in Georgia, he or she must complete a pre-bankruptcy credit counseling course as required by 11 U.S.C. Section 109(h) of the bankruptcy code. However, under certain circumstances, a bankruptcy judge can enter an order waiving such a requirement or extending time for the debtor to complete the course in order to avoid the dismissal of the bankruptcy case for failure to complete the credit counseling course.

In a Georgia bankruptcy case, In re Parker, Case Number 06-61224 (Bkrtcy. N.D. Ga. 2006), Judge Mary Grace Diehl found that the pre-bankruptcy counseling requirement under bankruptcy law was not a jurisdictional requirement for filing bankruptcy; thus, any court orders waiving the counseling requirement or giving the debtor more time to do the credit counseling are enforceable.

Even though the failure to complete the pre-bankruptcy filing credit counseling course can be remedied in Georgia, it is always best practice for debtors to complete the required counseling course appropriately in preparation for filing bankruptcy in Georgia.

Please call the Law Offices of Charles Clapp at 404.585.0040 if you would like to learn more about filing Chapter 7 or Chapter 13 bankruptcy in Atlanta, Georgia.