Learn about the two simple courses you must complete as part of your bankruptcy
If you are facing overwhelming debts, personal bankruptcy could very well be the path out for you. Unfortunately, sometimes people are reluctant to try bankruptcy because it seems too complicated and confusing. The fact that you have to take bankruptcy classes in order to complete your filing only reinforces this mistaken view.
The fact of the matter is, bankruptcy classes are actually very easy and very helpful. You do not have to worry about failing the class! These classes are graded on an “attendance only” basis. There is nothing to memorize and no test to take. Instead you simply have to attend the full sessions of the classes in person, by phone, or online in order to “pass” and be able to move forward with your bankruptcy filing.
Bankruptcy classes have been mandatory since 2005, when the Bankruptcy Abuse Prevention and Consumer Protection Act went into effect. Under this federal law, two different types of classes are required:
Credit Counseling
The credit counseling course is designed to help individuals understand the pros and cons of filing for bankruptcy, including its impact on their credit. Possible alternatives to bankruptcy, such as debt consolidation and budgeting, will be discussed. The credit counseling course must be completed BEFORE you file your bankruptcy petition. Upon completion of the 60 to 90 minute course, you will be given an official certificate that you will need to include with your petition when it is filed with the court. This certificate is only good for 180 days so it is important to start working with a bankruptcy attorney promptly after completing your course.
Debtor Education
The debtor education course is designed to prepare individuals for financial success after bankruptcy. It covers topics like budgeting, money management, and rebuilding your credit after bankruptcy. This course sometimes takes a bit longer than the credit counseling course, but you should not need to spend more than two hours on it. The debtor education course must be taken AFTER filing your bankruptcy petition. Again, you will receive a certificate showing you have completed the course. This certificate must be presented to the judge before they can approve and finalize your bankruptcy. Typically, it is best to obtain your certificate before your bankruptcy hearing.
Both the credit counseling and the debtor education courses must be taken with a credit counseling provider that is approved in the judicial district where you will be filing your bankruptcy. Providers do charge fees for the courses, but if you cannot afford the fees you can request a waiver.
Ready to Get Started?
If you would like to get your bankruptcy filing started, the best thing to do is meet with a qualified bankruptcy attorney from California Bankruptcy Relief. We will help you understand your options and decide whether now is the right time to take the credit counseling course and start preparing your bankruptcy petition.
