Last reviewed: 1 October 2026

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Bankruptcy credit counseling and the debtor education course, explained

Under U.S. federal bankruptcy law, an individual filing generally needs two separate courses. Credit counseling comes first: within the 180 days before filing, from an agency approved under the bankruptcy code.^[1] Debtor education comes after filing and is generally required to receive a discharge.^[3][4] The U.S. Trustee Program approves the providers of both.^[2][6] Neither is the same thing as a debt management plan.

The two courses side by side

"Debtor" means the person who files the case. Chapter 7 and Chapter 13 are the two common consumer chapters; the course requirements above come from sections of the code that apply to individuals.

The counseling rule and its exceptions

Section 109(h) says an individual may not be a debtor unless the briefing took place in the 180 days before filing, with an approved nonprofit budget and credit counseling agency.^[1] The code lists narrow exceptions:^[1]

• No adequate local agencies: the U.S. Trustee (or bankruptcy administrator, where a district has one) may determine that approved agencies in a district cannot reasonably serve the additional people, and must review that determination at least annually.^[1]
• Urgent circumstances: a debtor can submit a certification that describes exigent circumstances, states that the debtor asked an approved agency for counseling but could not get it within seven days of asking, and is satisfactory to the court. The exemption ends once the debtor completes the counseling and in no case runs past 30 days after filing, though the court may add 15 days for cause.^[1]
• Incapacity, disability, or active military duty in a combat zone: the requirement does not apply to a debtor whom the court determines, after notice and hearing, cannot complete it for those reasons.^[1]

These are court decisions. If you think one applies, that is a question for a bankruptcy attorney or the court, not something to assume.

Who counts as an approved provider

The code has the U.S. Trustee (or bankruptcy administrator) approve agencies and courses, and the clerk of court keeps a public list.^[2] The U.S. Trustee Program says it publishes lists of the credit counseling agencies and debtor education providers it has approved.^[6] Being a nonprofit, or holding an accreditation from a trade association, is not the same as being on that list; the test in the code is approval under section 111.^[1][2]

Section 111 sets minimum standards for an approved counseling agency. They include:^[2]

• a board of directors, the majority of whom are not employed by the agency and will not directly or indirectly benefit financially from the outcome of the counseling;
• a reasonable fee if one is charged, and services provided without regard to ability to pay the fee;
• safekeeping of client funds, with an annual audit of the trust accounts;
• full disclosures to a client, including funding sources, counselor qualifications, possible impact on credit reports, and costs;
• counselors who receive no commissions or bonuses based on the outcome of the counseling.

A new provider is approved for a probationary period of up to six months, and then for one year at a time.^[2] The code does not set a price; ask the provider and check the approved list first.

How this differs from a debt management plan

A debt management plan is a voluntary arrangement outside bankruptcy. The Consumer Financial Protection Bureau describes it as one in which you make a single payment to the counseling organization each month or pay period, and the organization makes monthly payments to each of your creditors, which typically lowers your monthly payments, interest charges, and fees.^[7] Our nonprofit counseling guide has the details. The bankruptcy counseling requirement is a briefing and budget analysis that must happen before you can file. The code does contemplate that a repayment plan might be developed in that process and requires it to be filed if so,^[5] but it does not require you to enroll in one. Agencies approved for bankruptcy counseling are held to the standards above; our own standard for nonprofit counseling agencies covers the separate question of voluntary counseling.

What you can check or do next

1. Before you pay anyone, find the agency or provider on the approved list reached from the U.S. Trustee Program's credit counseling and debtor education page.^[6]
2. Complete the counseling inside the 180-day window, and keep the certificate the agency gives you.^[1][5]
3. After filing, complete the debtor education course from an approved provider.^[3][4]
4. Ask your bankruptcy attorney, or the court clerk if you are filing without one, how and when each completion must be filed in your district.

What this page does not cover

It does not cover whether to file, which chapter fits, or what bankruptcy does to your credit. See Chapter 7 vs. Chapter 13 and reaffirmation agreements. It is general information, not legal advice.

When we will update this page

We revisit it when Congress amends 11 U.S.C. §§ 109(h), 111, 521(b), 727(a)(11) or 1328(g), or when the U.S. Trustee Program changes its approval process. Sources last read 1 October 2026.