Tennessee or Georgia residents filing consumer bankruptcy must complete a consumer credit counseling course before their bankruptcy and a financial management course after their bankruptcy.
Why Am I Required to Take Courses For My Bankruptcy?
The course requirements for Georgia bankruptcy are based on the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, which requires bankruptcy filers to get credit counseling from a government-approved organization within 180 days before filing. After filing for bankruptcy, Georgia petitioners must complete a financial management course. Failing to complete both courses as required can negatively affect your bankruptcy case.
Mandatory Pre-filing Credit Counseling
The pre-filing course is a general credit counseling course, and when filing Chapter 7 or Chapter 13 bankruptcy, petitioners must show their certificate as proof they completed it as required. The consumer credit counseling session is 60-90 minutes long and covers a general evaluation of your finances, options outside of bankruptcy, and your budget. The course cost is usually around $50, but the fee may be waived in cases of extreme hardship. The course is available in person, online, or by phone.
Mandatory Post-filing Course:
The post-filing (or pre-discharge) course is also mandatory. During the post-filing course, bankruptcy petitioners will go through information about budgeting, managing money, and using credit responsibly. The discharge of debt is not issued until the course is complete. Like the pre-filing credit counseling course, the post-filing course is available in person, online, or by phone and may cost anywhere from $50 to $ 100. Providers issue a certificate of completion that petitioners should hold on to in case it is needed to prove completion.
Who Provides the Credit Counseling?
Bankruptcy petitioners who must complete their mandatory courses should choose a provider from the approved debtor education list. Bankruptcy petitioners must take the courses from an approved provider in the judicial district handling their bankruptcy. If you aren’t sure which provider to use or how to schedule your mandatory pre-filing or post-filing credit counseling and financial management courses, discuss the options with an experienced local bankruptcy attorney.
If you need to discuss getting out of debt, or you need to talk about mandatory credit counseling for your bankruptcy, get in touch with Kenneth C. Rannick, P.C., Tennessee, and Georgia bankruptcy attorney. You are in good hands with Kenneth C. Rannick P.C.