Debtor Education Courses In Bankruptcy

One of the requirements in the process of debt relief through bankruptcy is to take two financial education courses. Before filing bankruptcy, you must take a pre-filing credit course called a credit counseling course. Before receiving a debt discharge, you must complete a debtor education course.

Class In Session

A credit counseling course is a class that teaches you tips on how to manage your finances and prevent future problems with debt. The course usually lasts for about one hours, and it is offered by nonprofit credit counseling agencies. It must be completed before you file for bankruptcy and will evaluate whether options other than bankruptcy are available to you. These are offered online and over the phone to consumers for a small fee.

The debtor education courses cover a range of topics related to personal finance, including budgeting, credit and debt management, and money management. The course must be completed after you file for bankruptcy, and is required to obtain a debt discharge. Once completed, you will file the credit counseling course certificate and the debtor education course certificate with the bankruptcy court.

The timeframe for filing the second course certificate under Chapter 7 is 60 days after the 341 creditors’ meeting. The deadline to file the financial management course certificate in Chapter 13 is whenever the filer makes their final Chapter 13 repayment plan payment.

For more information about financial education courses or the bankruptcy process, contact a Sacramento bankruptcy attorney. Our attorneys can review the requirements and help you make an informed decision about your steps toward debt relief.