If you’re drowning in debt, personal bankruptcy may be the only way out. Unfortunately, some people are hesitant to file for bankruptcy because it appears to be excessively difficult and unclear. The fact that you must attend bankruptcy classes in order to finish your file further adds to this erroneous perception.
The truth is that bankruptcy lessons are actually fairly simple and beneficial. There’s no need to be concerned about failing the class! These classes are assessed only on the basis of attendance. There are no facts to remember and no tests to take. Instead, you must just attend all of the classes in person, over the phone, or online to “pass” and be eligible to proceed with your bankruptcy case.
Since 2005, when the Bankruptcy Abuse Prevention and Consumer Protection Act took effect, bankruptcy classes have been required. There are two types of classes needed by this federal law. Read on to learn what they are and call The Law Offices of Paul Y. Lee at 951-755-1000 to learn more.
Credit counseling
The credit counseling course is meant to assist people understand the benefits and drawbacks of bankruptcy, as well as the impact it will have on their credit. Debt reduction and budgeting will be presented as possible alternatives to bankruptcy. You must finish the credit counseling course before filing your bankruptcy case.
You will be granted an official certificate upon completion of the 60-to-90-minute course, which you must include with your petition when it is filed with the court. Because this certificate is only valid for 180 days, it is critical that you begin working with a bankruptcy attorney as soon as possible after finishing the course.
Educating debtors
The debtor education course is aimed to help people get back on their feet financially following bankruptcy. Budgeting, money management, and credit rebuilding following bankruptcy are among the subjects covered. This course may take a little longer than the credit counseling course, but it should not take more than two hours to complete.
The debtor education course must be completed AFTER your bankruptcy petition has been filed. You will once again be given a certificate indicating that you have finished the course. This certificate must be provided to the judge before your bankruptcy can be approved and finalized. Obtaining your certificate before your bankruptcy hearing is usually the best option.
Both credit counseling and debtor education must be completed with a credit counseling service approved in the court district where your bankruptcy will be filed. Course providers demand fees, but if you cannot pay them, you can seek a waiver.
Are you ready to begin?
The easiest way to get started with your bankruptcy petition is to visit with a knowledgeable bankruptcy attorney at The Law Offices of Paul Y. Lee. We’ll walk you through your alternatives and help you determine if now is the perfect moment to enroll in a credit counseling program and begin drafting your bankruptcy petition.
