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Approved Credit Counseling
11 U.S.C. §109(h):
(h) (1) Subject to paragraphs (2) and (3), and notwithstanding any other provision of this
section, an individual may not be a debtor under this title unless such individual has, during the
180-day period preceding the date of filing of the petition by such individual, received from an
approved nonprofit budget and credit counseling agency described in section 111(a) an
individual or group briefing (including a briefing conducted by telephone or on the Internet) that
outlined the opportunities for available credit counseling and assisted such individual in
performing a related budget analysis.
(2) (A) Paragraph (1) shall not apply with respect to a debtor who resides in a district for
which the United States trustee (or the bankruptcy administrator, if any) determines that the
approved nonprofit budget and credit counseling agencies for such district are not reasonably
able to provide adequate services to the additional individuals who would otherwise seek
credit counseling from such agencies by reason of the requirements of paragraph (1).
(B) The United States trustee (or the bankruptcy administrator, if any) who makes a
determination described in subparagraph (A) shall review such determination not later than 1
year after the date of such determination, and not less frequently than annually thereafter.
Notwithstanding the preceding sentence, a nonprofit budget and credit counseling agency
may be disapproved by the United States trustee (or the bankruptcy administrator, if any) at
any time.
(3)(A) Subject to subparagraph (B), the requirements of paragraph (1) shall not apply with
respect to a debtor who submits to the court a certification that—
(i) describes exigent circumstances that merit a waiver of the requirements of paragraph (1);
(ii) states that the debtor requested credit counseling services from an approved nonprofit
budget and credit counseling agency, but was unable to obtain the services referred to in
paragraph (1) during the 5-day period beginning on the date on which the debtor made that
request; and
(iii) is satisfactory to the court.
(B) With respect to a debtor, an exemption under subparagraph (A) shall cease to apply to
that debtor on the date on which the debtor meets the requirements of paragraph (1), but in no
case may the exemption apply to that debtor after the date that is 30 days after the debtor files
a petition, except that the court, for cause, may order an additional 15 days.
(4) The requirements of paragraph (1) shall not apply with respect to a debtor whom the court
determines, after notice and hearing, is unable to complete those requirements because of
incapacity, disability, or active military duty in a military combat zone. For the purposes of this
paragraph, incapacity means that the debtor is impaired by reason of mental illness or mental
deficiency so that he is incapable of realizing and making rational decisions with respect to his
financial responsibilities; and “disability” means that the debtor is so physically impaired as to
be unable, after reasonable effort, to participate in an in person, telephone, or Internet briefing
required under paragraph (1).
11 U.S.C. §109(h):
(h) (1) Subject to paragraphs (2) and (3), and notwithstanding any other provision of this
section, an individual may not be a debtor under this title unless such individual has, during the
180-day period preceding the date of filing of the petition by such individual, received from an
approved nonprofit budget and credit counseling agency described in section 111(a) an
individual or group briefing (including a briefing conducted by telephone or on the Internet) that
outlined the opportunities for available credit counseling and assisted such individual in
performing a related budget analysis.
(2) (A) Paragraph (1) shall not apply with respect to a debtor who resides in a district for
which the United States trustee (or the bankruptcy administrator, if any) determines that the
approved nonprofit budget and credit counseling agencies for such district are not reasonably
able to provide adequate services to the additional individuals who would otherwise seek
credit counseling from such agencies by reason of the requirements of paragraph (1).
(B) The United States trustee (or the bankruptcy administrator, if any) who makes a
determination described in subparagraph (A) shall review such determination not later than 1
year after the date of such determination, and not less frequently than annually thereafter.
Notwithstanding the preceding sentence, a nonprofit budget and credit counseling agency
may be disapproved by the United States trustee (or the bankruptcy administrator, if any) at
any time.
(3)(A) Subject to subparagraph (B), the requirements of paragraph (1) shall not apply with
respect to a debtor who submits to the court a certification that—
(i) describes exigent circumstances that merit a waiver of the requirements of paragraph (1);
(ii) states that the debtor requested credit counseling services from an approved nonprofit
budget and credit counseling agency, but was unable to obtain the services referred to in
paragraph (1) during the 5-day period beginning on the date on which the debtor made that
request; and
(iii) is satisfactory to the court.
(B) With respect to a debtor, an exemption under subparagraph (A) shall cease to apply to
that debtor on the date on which the debtor meets the requirements of paragraph (1), but in no
case may the exemption apply to that debtor after the date that is 30 days after the debtor files
a petition, except that the court, for cause, may order an additional 15 days.
(4) The requirements of paragraph (1) shall not apply with respect to a debtor whom the court
determines, after notice and hearing, is unable to complete those requirements because of
incapacity, disability, or active military duty in a military combat zone. For the purposes of this
paragraph, incapacity means that the debtor is impaired by reason of mental illness or mental
deficiency so that he is incapable of realizing and making rational decisions with respect to his
financial responsibilities; and “disability” means that the debtor is so physically impaired as to
be unable, after reasonable effort, to participate in an in person, telephone, or Internet briefing
required under paragraph (1).
