Before you file a case under bankruptcy under chapter 7 or under chapter 13 you must have to complete a debtor education course. Debtor education course helps you to save money, discharging your debt.
Debtor education course requirement:
For receiving discharge of liabilities under chapter 7 or chapter 13 you must have to join debtor education course before filing bankruptcy. The goal of debtor education course is educate you so that you take smart decision regarding your property and save them smartly. Debtor education course will help the applicant a lot in understanding all the details properly. One must go for the debtor education course for better learning.
When you joins debtor education course you learn about:
Consumer protection laws
Management of money
How to prepare budgets
How to handle unexpected financial situation
With few exception all person who file bankruptcy joins debtor education course. The exceptions mainly are:
Debtor education course is unavailable in his or her district/city.
You have some disability which prevents you to join debtor education course.
You are on active duty in a military combat zone.
When do you need to complete a bankruptcy course?
If you have to filed under chapter 7 you must have to complete debtor education course and submit a certificate to court not later than 60 days scheduled date of your meeting of creditors. In Chapter 13 bankruptcy, you must file the certificate of completion before you make your last plan payment or file a motion to request a hardship discharge.
If debtor education requirement is not completed by you what happens???
If debtor education course is not completed by you within specified time period then court dismiss your bankruptcy case without discharge.
What happens during debtor education course???
You can attend debtor education course over internet or over mobile or by presence physically in class. If you presence physically then notes are given to you and all other study materials are give to you and if you complete the course over phone the you will receive a workbook.
If you attend the course over phone or internet you also have to give an additional test in which you have to obtain satisfactory marks which are not less than 70%.
Filing your certificate of completion
When you complete debtor education course you must have to file certicate of debtor education course with court.
Fees of debtor education course
Fees of debtor education course are very less. The person who is unable to pay fees can avail debtor education at concessional rate.
What will you gain from debtor education course?
Credit counseling main focus is to see whether there are alternatives for bankruptcy while debtor education course manages your debt. These courses cover money management skills, budgeting for spending and saving and the prudent use of credit. Taking the credit counseling and debtor education is highly advisable for the proper management of the money. Bankruptcy course and bankruptcy pre discharge course are also considered as very useful.