Missteps can cause headaches galore.

• Position: Bankruptcy - Credit counseling

Under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, individuals hoping to file a petition in U.S. bankruptcy court now need to attend a credit counseling session from an agency approved by the Office of the U.S. Trustee prior to filing. They also will require another counseling session before any bankruptcy debts can be discharged.

It typically is up to the Trustee's Office to recommend a specific credit counseling service for potential filers. The counseling can take place in person, over the phone, or online. According to the Federal Trade Commission, prebankruptcy counseling typically is a single session and costs an average of $50. You will get a written certificate to turn in to the bankruptcy court.

Bankruptcy-related credit counseling is not a trip to the woodshed, points out the Financial Planning Association, Denver, Colo. It is intended to help an individual reevaluate his or her spending and prepare for life after certain debts are discharged. The counselor should provide a personal financial assessment, a reasonable and manageable spending plan, a detailed action plan, and short- and long-term financial goals.

Credit counseling is a valuable service whether it is mandated before a bankruptcy filing or if you simply are trying to organize your finances. However, it might be wise to consult a financial planner specializing in debt and bankruptcy issues before you do anything--filing for bankruptcy should be done only as an absolute last resort because it will damage your credit rating for the next 10 years. In general, though, here are some important things to know and ask about credit counseling before making a move:

Consult various agencies about reliable credit counseling services in the community. If you are filing for bankruptcy, it generally is wise to go with the chosen consumer credit agencies recommended by the trustee, but you still should check them out. See which agencies your local media consults when talking about credit counseling, and check in with the Better Business Bureau to find out if it has obtained complaints on the agency.

Watch carefully for fees and expensive services. A reputable credit counseling agency should send you free information about its policies and activities without asking...