Is HUD housing counseling the same as the credit counseling I need to file bankruptcy?

No. They are separate services with separate provider lists. The pre-filing briefing required under 11 U.S.C. § 109(h) comes from an agency approved by the U.S. Trustee Program, and the Northern District of California's § 342(b) notice describes it as a briefing outlining the opportunities available for credit counseling. Completing housing counseling does not produce the certificate a bankruptcy court requires.

Does housing counseling cost anything?

Counseling through HUD-approved nonprofit and government agencies is commonly free or low-cost, and several states fund it directly. Maryland's Housing Counseling and Foreclosure Mediation Fund exists to support nonprofit and government housing counselors providing assistance to homeowners trying to avoid foreclosure (Md. Code, Housing and Community Development § 4-507). Ask any provider to state its fees in writing before you sign anything.

Can filing bankruptcy stop a foreclosure sale?

Filing a petition generally triggers an automatic stay that halts most collection actions. The Bankruptcy Administrator for the Northern District of Alabama explains that as long as the stay remains in effect, creditors cannot bring or continue lawsuits, make wage garnishments, or even make telephone calls demanding payment. It does not reach every action — 11 U.S.C. § 362 lists exceptions, and a creditor may ask the court for relief from the stay.

How is Chapter 13 different from a loan modification?

A modification changes the loan itself, negotiated with the servicer. Chapter 13 is a court-supervised repayment plan. The U.S. Bankruptcy Court for the Southern District of Alabama describes it as allowing individuals to stop foreclosure proceedings and make delinquent mortgage payments over time, while continuing to make all mortgage payments that come due during the plan. Some courts also run modification programs inside a bankruptcy case.

How do I spot a foreclosure rescue scam?

Be wary of anyone charging up-front fees to stop a foreclosure. Maryland defines a 'foreclosure consultant' by statute as a person who represents they will stop, delay, or postpone a foreclosure sale, obtain forbearance, or save the home from foreclosure (Md. Code, Real Property § 7-301), and regulates them for a reason. Under 11 U.S.C. § 528, advertisers offering foreclosure or debt help must disclose that the assistance may involve bankruptcy relief.

What does foreclosure mediation actually involve?

Maryland's statute defines foreclosure mediation as a conference where the parties, their attorneys, or their representatives appear before an impartial individual to try to reach agreement on a loss mitigation program (Md. Code, Real Property § 7-105.1). Maine's court-run program addresses reinstatement, loan modification, and restructuring of the mortgage debt (14 M.R.S. § 6321-A). Availability, timing, and fees vary widely by state.

Who do I call first if I am about to lose my house?

Start with a HUD-approved housing counselor and, if a case has been filed, read every court paper for deadlines. Bankruptcy courts themselves point homeowners to foreclosure resources before filing — the District of Maryland's pre-filing page links foreclosure resources and a Foreclosure Prevention Pro Bono Project, and the Southern District of Indiana lists foreclosures among its before-filing topics.

Homes & mortgages

HUD Housing Counseling and Foreclosure Help: Where to Get Free Assistance

HUD-approved housing counselors provide free or low-cost guidance to homeowners facing foreclosure, including help requesting a loan modification or other loss mitigation from a servicer. Many states also run foreclosure mediation programs that put you and the lender in front of a neutral third party. Housing counseling is separate from the credit counseling briefing bankruptcy law requires under 11 U.S.C. § 109.

Key points

HUD-approved housing counseling is a different service from the pre-bankruptcy credit counseling briefing required under 11 U.S.C. § 109(h), and completing one does not satisfy the other.
Several states fund housing counselors by statute and route foreclosure cases to court-run mediation, such as Maine's Foreclosure Diversion Program and Maryland's foreclosure mediation process.
Chapter 13 lets a homeowner cure a mortgage default over time while keeping current on payments that come due during the plan, according to the U.S. Bankruptcy Court for the Southern District of Alabama.
Filing a bankruptcy petition generally triggers an automatic stay that halts most collection actions, including lawsuits and wage garnishments, though it does not reach every category of action listed in 11 U.S.C. § 362.
Be cautious with paid 'foreclosure consultants' — Maryland regulates them by statute, and federal law requires bankruptcy-related advertisers to disclose that their services may involve bankruptcy relief under 11 U.S.C. § 528.

If you are behind on a mortgage and do not know who to call, there is a free option most people never hear about: a housing counselor approved by the U.S. Department of Housing and Urban Development. Courts themselves point homeowners toward foreclosure resources before anything else. This page explains what those counselors do, how state mediation programs fit in, and where bankruptcy enters the picture.

How does housing counseling actually work?

A housing counselor sits down with you — by phone, online, or in person — and goes through your income, your mortgage, and what your servicer has already told you. The point is to identify which loss mitigation options exist and to help you assemble a request the servicer will actually process. Maryland's statute describes that evaluation as a loss mitigation analysis: a review of the facts and circumstances of a loan secured by owner-occupied residential property to decide whether a loan modification is available and, if not, whether any other loss mitigation program is (Md. Code, Real Property § 7-105.1).

Counselors do not represent you in court and do not give legal advice. What they do is translate. Servicer paperwork is dense, deadlines are short, and a single missing document restarts the clock. Maine's statute directs its Bureau of Consumer Credit Protection to run a statewide hotline connecting homeowners with HUD-approved housing counselors specifically to discuss options for avoiding foreclosure (14 M.R.S. § 6112).

Review of your mortgage, arrears, and current income
Help preparing and submitting a loss mitigation or modification package
Explanation of what the servicer's response actually means
Referral to legal aid or a court mediation program where one exists

What changes the answer for your situation?

Three things move this the most. First, whether the property is your primary residence — most state foreclosure mediation programs reach only owner-occupied homes. Maine's Foreclosure Diversion Program, for example, applies to a residential property that is the mortgagor's primary residence, defined as not more than four residential units or a single condominium unit (Maine R. Civ. P. 93).

Second, how far the foreclosure has progressed. Some programs are triggered by the filing of a foreclosure complaint and carry their own response deadlines; in Maine, the plaintiff must attach a one-page notice to the front of the foreclosure complaint describing the mediation program (14 M.R.S. § 6321-A).

Third, whether you want to keep the house or leave it on better terms. Maryland's statute defines a loss mitigation program to include options that keep you in the property and options that simplify relinquishing ownership, such as a short sale or deed in lieu (Md. Code, Real Property § 7-105.1). Both are legitimate outcomes, and a counselor will discuss either.

What a counselor helps with versus what a lawyer handles
Question	Housing counselor	Attorney
Which loss mitigation options exist	Yes	Yes
Preparing a modification package	Yes	Sometimes
Defending the foreclosure lawsuit	No	Yes
Filing a bankruptcy petition	No	Yes
Interpreting a statute or rule	No	Yes

What does federal law say about counseling and bankruptcy?

Two different counseling requirements get confused constantly, so it is worth separating them. HUD housing counseling is a voluntary service for homeowners facing foreclosure. The Bankruptcy Code separately requires an individual debtor to receive a credit counseling briefing before filing. The Northern District of California's official notice explains that, with limited exceptions, 11 U.S.C. § 109(h) requires all individual debtors who file for bankruptcy relief on or after October 17, 2005 to receive a briefing outlining the available opportunities for credit counseling.

That briefing comes from an agency on the U.S. Trustee Program's approved list, and courts treat it as non-optional. The Bankruptcy Court for the District of Massachusetts puts it directly: if you have not obtained your credit counseling certificate, your bankruptcy case will be dismissed (Bankr. D. Mass. official page — Debtor Information).

Federal law also constrains who may advertise foreclosure and debt help. Under 11 U.S.C. § 528, an advertisement directed to the general public that indicates assistance with mortgage foreclosures or excessive debt must disclose clearly and conspicuously that the assistance may involve bankruptcy relief.

HUD housing counseling — voluntary, for homeowners, focused on the mortgage
Credit counseling briefing — required before filing under 11 U.S.C. § 109(h)
Debtor education — a separate post-filing course with its own approved-provider list

Where do state and local rules differ?

Substantially. Foreclosure procedure is state law, so who mediates, when, and at what cost varies a great deal, and we do not publish a verified figure or program description for every state. Two examples show the range.

Maine established a foreclosure mediation program by statute, requiring the Supreme Judicial Court to adopt rules for mediation in foreclosure actions on owner-occupied residential property of no more than four units, addressing reinstatement, loan modification, and restructuring of the mortgage debt (14 M.R.S. § 6321-A). It also funds housing counseling contracts with nonprofit organizations through its Bureau of Consumer Credit Protection (14 M.R.S. § 6112).

Maryland created a Housing Counseling and Foreclosure Mediation Fund to support nonprofit and government housing counselors providing legal assistance to homeowners trying to avoid foreclosure, and to help fund foreclosure mediations conducted by the Office of Administrative Hearings (Md. Code, Housing and Community Development § 4-507). Check your own state hub, and ask a local counselor what exists where you live.

Two state approaches, as examples only
State	Mediation authority	Counseling support
Maine	Court-run Foreclosure Diversion Program (Maine R. Civ. P. 93)	Statewide hotline to HUD-approved counselors (14 M.R.S. § 6112)
Maryland	Office of Administrative Hearings mediation (Md. Code, Real Property § 7-105.1)	Housing Counseling and Foreclosure Mediation Fund (Md. Code, Housing and Community Development § 4-507)

What does this look like in practice when bankruptcy is on the table?

Many people arrive at a housing counselor and leave with a referral to a bankruptcy attorney, or the reverse. The two paths overlap because a mortgage arrearage is exactly the kind of debt a repayment plan is designed to handle.

The U.S. Bankruptcy Court for the Southern District of Alabama describes Chapter 13 as offering individuals an opportunity to save their homes from foreclosure: individuals can stop foreclosure proceedings by filing and make delinquent mortgage payments over time, but must continue to make all mortgage payments that come due during the plan on time. That court also notes that filing generally stops most collection actions against the debtor or the debtor's property under 11 U.S.C. § 362, though it does not stay certain listed types of actions.

Some courts run their own mortgage modification programs inside a bankruptcy case. The Northern District of California has published guidelines addressing residential loan modifications on relief-from-stay motions and in Chapter 11 and Chapter 13 plans, and the District of Columbia's local rules describe a Mortgage Modification Program with its own portal, deadlines, and fees.

A counselor's modification request and a bankruptcy filing are not mutually exclusive
Chapter 13 addresses arrears over time; ongoing payments still come due
Some districts run a court-supervised mortgage modification program

What documents and information should you gather first?

Bring more than you think you need. A counselor works faster with the actual paperwork than with your recollection of it, and the same documents feed a bankruptcy consultation if you get there.

Courts expect similar material. A bankruptcy debtor must file statements listing assets, income, liabilities, and the names and addresses of all creditors and how much they are owed (Bankruptcy Administrator for the Northern District of Alabama, Understanding Bankruptcy). Tax returns matter too — the Massachusetts court lists unfiled tax returns among the issues to raise with an attorney before filing, noting a case may be dismissed if returns have not been filed.

If a foreclosure case is already in court, the notices you received are themselves important documents. Maine requires a one-page notice attached to the front of the foreclosure complaint, including a sample answer the defendant may return to the court to be scheduled for mediation (14 M.R.S. § 6321-A). Missing that envelope can cost you the mediation.

Mortgage statement, note, and any escrow or arrears breakdown
Every letter from the servicer, including denial letters
Court papers: the complaint, summons, and any attached notice form
Recent pay stubs, benefit award letters, and the last few tax returns
A list of all creditors and what you believe you owe each

What should you ask a lawyer?

Court clerks cannot answer these questions for you. The District of Maryland lists what counts as legal advice and is therefore off-limits to court staff: explaining the meaning of a statutory provision or rule, explaining the result of taking or not taking an action in a case, helping you complete forms, and advising on the best procedure to accomplish a goal.

Cost is a fair opening question. Under 11 U.S.C. § 528, an agency providing bankruptcy assistance must execute a written contract explaining the services it will provide and the fees or charges for them, and must give you a copy. The Bankruptcy Court for the District of Maryland maintains a list of attorneys who have agreed to consult with low-income debtors for a reduced or deferred fee, and describes a Debtor Assistance Project clinic offering a free 30-minute consultation.

Ask about local court fees as well. The Chapter 13 filing fee is $235 (28 U.S.C. § 1930(a)(1)(B)), plus a $78 administrative fee (Bankruptcy Court Miscellaneous Fee Schedule, Item 8).

Does a repayment plan realistically cover my arrears at my income?
What happens to the foreclosure case if I file, and what is not stayed?
Does this district run a mortgage modification program?
What will this cost in total, and can any of it be paid over time?

Frequently asked questions

Is HUD housing counseling the same as the credit counseling I need to file bankruptcy?: No. They are separate services with separate provider lists. The pre-filing briefing required under 11 U.S.C. § 109(h) comes from an agency approved by the U.S. Trustee Program, and the Northern District of California's § 342(b) notice describes it as a briefing outlining the opportunities available for credit counseling. Completing housing counseling does not produce the certificate a bankruptcy court requires.
Does housing counseling cost anything?: Counseling through HUD-approved nonprofit and government agencies is commonly free or low-cost, and several states fund it directly. Maryland's Housing Counseling and Foreclosure Mediation Fund exists to support nonprofit and government housing counselors providing assistance to homeowners trying to avoid foreclosure (Md. Code, Housing and Community Development § 4-507). Ask any provider to state its fees in writing before you sign anything.
Can filing bankruptcy stop a foreclosure sale?: Filing a petition generally triggers an automatic stay that halts most collection actions. The Bankruptcy Administrator for the Northern District of Alabama explains that as long as the stay remains in effect, creditors cannot bring or continue lawsuits, make wage garnishments, or even make telephone calls demanding payment. It does not reach every action — 11 U.S.C. § 362 lists exceptions, and a creditor may ask the court for relief from the stay.
How is Chapter 13 different from a loan modification?: A modification changes the loan itself, negotiated with the servicer. Chapter 13 is a court-supervised repayment plan. The U.S. Bankruptcy Court for the Southern District of Alabama describes it as allowing individuals to stop foreclosure proceedings and make delinquent mortgage payments over time, while continuing to make all mortgage payments that come due during the plan. Some courts also run modification programs inside a bankruptcy case.
How do I spot a foreclosure rescue scam?: Be wary of anyone charging up-front fees to stop a foreclosure. Maryland defines a 'foreclosure consultant' by statute as a person who represents they will stop, delay, or postpone a foreclosure sale, obtain forbearance, or save the home from foreclosure (Md. Code, Real Property § 7-301), and regulates them for a reason. Under 11 U.S.C. § 528, advertisers offering foreclosure or debt help must disclose that the assistance may involve bankruptcy relief.
What does foreclosure mediation actually involve?: Maryland's statute defines foreclosure mediation as a conference where the parties, their attorneys, or their representatives appear before an impartial individual to try to reach agreement on a loss mitigation program (Md. Code, Real Property § 7-105.1). Maine's court-run program addresses reinstatement, loan modification, and restructuring of the mortgage debt (14 M.R.S. § 6321-A). Availability, timing, and fees vary widely by state.
Who do I call first if I am about to lose my house?: Start with a HUD-approved housing counselor and, if a case has been filed, read every court paper for deadlines. Bankruptcy courts themselves point homeowners to foreclosure resources before filing — the District of Maryland's pre-filing page links foreclosure resources and a Foreclosure Prevention Pro Bono Project, and the Southern District of Indiana lists foreclosures among its before-filing topics.

Sources

By Antonio G. Jimenez, Esq. · Florida Bar No. 21022

Sources verified August 1, 2026 · How we verify

Every figure on this page is drawn from a primary legal source and checked against our canonical legal database before publication. Bankruptcy.law is not a law firm and does not provide legal advice.

Turn this into a plan for your exact situation, state, and court.

See My Debt Relief Options→