Now your bankruptcy court will require you to demonstrate you have complete pre-bankruptcy counseling. It will cost $50 or more.

Beginning October 17, 2005, consumers filing for bankruptcy will be required to go through a government-approved credit counseling program within six months before they file for bankruptcy protection.

In new information for consumers, the Federal Trade Commission suggests important questions for consumers to ask when reviewing the state-by-state list of government-approved credit counseling organizations at www.usdoj.gov/ust – including inquiries about fees, counselor training, and services offered.

The required counseling can take place in person, over the phone, or online. Consumers can expect the session to last about 90 minutes and include an analysis of their budget. While the organization can charge a reasonable fee for its services, possibly in the $50 range depending on location, services offered, and administrative costs, organizations approved by the government must waive the fee for anyone who cannot afford to pay. After the counseling is complete, consumers must get a certificate as proof; some organizations may charge extra for the certificate. Consumers should check to make sure they receive the correct certificate for the bankruptcy court where they will be filing.