Long before the amendment of the bankruptcy laws, people just went ahead and declared insolvency.
In as much as you have a right to do so when you are in a financial crisis, it leaves you at a risk because there are still other options you could consider before taking this big step.
Some of these options include debt consolidation.
Bankruptcy counseling plays a big role in helping you decide whether insolvency is really the way for you to go.
If its done by a professional counselor, then you will get to realize how many other alternatives are within your reach.
If the alternatives are not compatible with your plans, then insolvency counseling will help you cope with the stigma attached to bankruptcy.
The law has made it compulsory for one to attend these classes before filing for insolvency.
Be aware that there is a cost that comes with the exercise.
The cost is anything between $50 and $90 depending on where you live and the kind of service you are going to be given.
However, it can be provided free of charge if you can really demonstrate that you surely cannot meet the costs.
To prove that you have actually undergone the counseling, you will be issued with a certificate that you will be required to provide in court before the filing commences.
The certificates are provided through a standard system that has been put in place to rule out fraud.
Be sure to get your counseling sessions from an approved firm.