Bankruptcy And Compulsory Debt Education Classes
If you are intending to file for bankruptcy, then you need to be aware of two requirements – credit counseling and debt education. Credit counseling must be completed within the 60-day period immediately prior to filing for bankruptcy. Debt education cannot be completed at the same time. In fact, it must be completed after you have filed for bankruptcy.
Credit counseling is used to find alternatives to bankruptcy. Debt education, as the name suggests, is used to teach you better money management skills in the hope that you don’t find yourself in financial difficulties again. While debt education is a requirement for both Chapter 7 and 13 bankruptcy petitions, those undertaking the Chapter 7 option need to be aware of time management. Chapter 7 petitions can be completed in as little as three or four months if the debtor has few or no assets.
Your debts under Chapter 7 or Chapter 13 petition will not be discharged until you have completed your debtor education program. The program itself must be delivered by a court-approved provider (your local court house has a list of local providers) and will cost between $50 and $100 per person. If you are filing for bankruptcy as a couple, then both must attend the debtor education sessions.
On completion of your debtor education session, the provider will issue you a certificate that has a unique identification number (for joint petitioners, each party must attend and receive their own unique certificate). These certificates must be delivered to the bankruptcy trustee who will then proceed to complete the discharge of your debts. Debt education classes are compulsory, and failure to attend will result in your petition being dismissed, often with prejudice.
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