Must I have credit counseling before bankruptcy? Absolutely, you must have credit counseling! This is one of the big reasons that you do not want to wait until the last minute, if your financial deficiencies are stemming from an impending sheriff sale.  The new Bankruptcy Code (BAPCPA) presently requires credit counseling prior to filing a bankruptcy case. Failure to obtain counseling will almost always lead to dismissal of your chapter 13 case. Said another way, you are not even considered to be a debtor if you don't have counseling. The penalty for the dismissal means loss of the filing fee, possibly your attorney's fee, and perhaps even your home to a sheriff sale. Since credit counseling can be done over the Internet or over the telephone, any person reading this can obtain such counseling without major inconvenience.