Before a bankruptcy filer can receive a discharge of debt in their Chapter 7 or Chapter 13 bankruptcy case, they must complete a Debtor Education Course. The Debtor Education Course requirement is sometimes referred to as the pre discharge debtor education course.
What is the Purpose of the Debtor Education Course Requirement?
The required debtor education course is designed to teach bankruptcy filers about managing money, and using credit wisely. The overall goal of the course is to teach people how to make smart financial choices that will help avoid needing to seek bankruptcy relief again at a later date.
What If You Don’t Complete the Debtor Education Requirement?
If a bankruptcy filer does not complete the debtor education requirement, the court will not issue a discharge of debt at the conclusion of the bankruptcy.
What to Expect from the Bankruptcy Debtor Education Course:
Your bankruptcy attorney can recommend a good debtor education course or you can find a list of approved debtor education providers in your area on the U.S. Trustee’s website. When taking the course, you can expect to learn about a variety of different money management, and credit related topics including:
- How to Prepare a Budget
- Using Credit Effectively (and wisely)
- Smart Money Management
- Consumer Protection Laws and Agencies
- Strategies for Preparing for and Dealing with Unexpected Financial Crisis
Who is Required to Take the Bankruptcy Debtor Education Course?
There are very few exceptions to bankruptcy’s requirement for filers to complete a debtor education course. If you are filing bankruptcy, it is safe to assume you are required to complete a qualified debtor education course prior to receiving a discharge of debt. If you believe you may be exempt from bankruptcy’s debtor education course requirement, discuss the possibility with an experienced local bankruptcy attorney as soon as possible in order to avoid any delays in receiving your discharge of debt.
All the Details: Bankruptcy’s Debtor Education Course Requirement
When filing Chapter 7 bankruptcy, the debtor education course certificate of completion needs to be filed with the court no later than 60 days after the first scheduled date for the Meeting of the Creditors. When filing Chapter 13 bankruptcy, the certificate of completion needs to be filed before the last plan payment is made or before filing a motion to request a hardship discharge.
If you are facing bankruptcy and worried about the requirements to receive a bankruptcy discharge of debt, please don’t hesitate to contact Ken Rannick. Most bankruptcy offices in the Chattanooga area don’t have a single Consumer Bankruptcy Specialist on staff. Our office is the only one with two. You are in good hands with Kenneth C. Rannick P.C.