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    Bankruptcy FAQ's

    Every day we help people manage their finances.

    Rebuilding after Bankruptcy is an accomplishment worth celebrating. And getting there takes healthy financial habits. We can help. Check out our frequently asked questions below. Visit our resources section that has helpful handouts and financial calculators. And check out our blog, Sense and Centsibility,for posts about everything financially related.

    Call 888.577.2227


  • What services does LSS provide in the bankruptcy process?


    Pre-filing Counseling: You can consult with an attorney either before or after your pre-filing bankruptcy counseling session. When you complete the pre-filing bankruptcy counseling, you will receive a certificate of counseling to give to your attorney. Your attorney can then file bankruptcy on your behalf.

    Pre-Discharge Education: The next step is bankruptcy pre-discharge education. Ask your attorney how soon you need to complete the class. After completion of the class, you receive another certificate. Give this certificate to your attorney, in order to have your debts discharged at the appropriate time.

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    How does filing bankruptcy affect my credit?


    The fact that you filed bankruptcy will be on your credit report for 10 years. This means higher interest rates and less available credit. The closer you are to the date of filing the bigger the impact. As long as you are paying your bills on time and taking positive steps to rebuild your credit, it does not take 10 years for your credit to improve, . More details are discussed at the bankruptcy pre-discharge education class.
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    Do the counseling certificates expire?


    Yes, you must file for bankruptcy within 180 days of the date on the counseling certificate. Otherwise, the certificate expires and the counseling must be repeated before you can file bankruptcy.
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    Are the financial counselors at LSS also Attorneys?


    No, LSS financial counselors are not bankruptcy attorneys and cannot provide legal advice. We will help you compile a list of questions.
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    Will the financial counselor understand my unique situation?


    Absolutely! There are many reasons that people look to bankruptcy as an option to address debts. Our role is not to judge or criticize how you may have come to file bankruptcy, but to make suggestions to help you achieve positive changes for a more successful financial future.
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    What if Bankruptcy isn’t an option for me?


    Bankruptcy is simply one option to address debts. We will help you to explore all other feasible options.
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    How much does the bankruptcy counseling session cost?


    The fee for a pre-filing bankruptcy counseling session presented by one of our professional credit counselors is $75 for single or joint filers. LSS will waive the bankruptcy pre-filing counseling fee of $75 for consumers whose household income is equal to or less than 150 percent of the estimated poverty threshold for their applicable family size as published in the current Federal Poverty Levels Guidelines.

    The fee for the pre-discharge bankruptcy education class is $40 per person. LSS will waive the bankruptcy pre-discharge education fee of $40 for consumers whose household income is equal to or less than 150 percent of the estimated poverty threshold for their applicable family size as published in the currentFederal Poverty Levels Guidelines.

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    My spouse and I are filing for bankruptcy jointly. Do we both have to complete the bankruptcy education?


    Yes, if you are a married couple, and both filing, you must both complete the education. You have three options to complete this requirement.

    • You may both register and attend a bankruptcy workshop in person by calling 888.577.2227.
    • You may register to take the online course, Money in Motion together by following the instructions for our online education.
    • You may register to take the online course, Money in Motion seperately by following the instructions for our online education..
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