During bankruptcy, you may be experiencing a range of emotions—everything from fear to confusion. Not to fret. We’ve compiled a list of the 9 most commonly asked questions (and what you need to know) when it comes to getting your debts discharged through bankruptcy.
One of the final steps during the bankruptcy process is completing the Debtor Education Course. What’s that? Keep reading…
In compliance with the Bankruptcy Code, all bankruptcy petitioners are required to complete a Debtor Education Course, after filing for bankruptcy but before discharge. The bankruptcy petitioner is also required to have already completed Credit Counseling, which must be done prior to filing for bankruptcy.
1. Who needs to take a Debtor Education Course?
If you are filing for Chapter 7 or Chapter 13 bankruptcy, completion of the Debtor Education Course is required by law.
2. I already completed the Credit Counseling. Why do I need to take the Debtor Education Course, too?
The Credit Counseling assesses your current financial situation to help determine if bankruptcy is the best option. On the other hand, the Debtor Education Course helps prepare you for the future with financial planning and budgeting tips to help you better manage your finances.
3. Is the Debtor Education Course the same as Financial Management?
Yes. Although it is most commonly referred to as Debtor Education, you may also hear Financial Management Course, Pre-Discharge Bankruptcy Course, Post-Filing Course, or some other variation. They are all the same and must be completed after filing for bankruptcy but before debts can be discharged.
4. Is there a time requirement?
Yes, a minimum of 2 hours must be spent within the course as required by law.
5. Who offers the Debtor Education Course?
This course can be completed online or by phone with an EOUST-approved provider.
6. When do I need to complete this course?
For a Chapter 7 bankruptcy, you must complete the course within 60 days of your meeting of creditors (also known as a 341 meeting). For a Chapter 13 bankruptcy, you must complete it before making your final payment or before filing a motion requesting a discharge based on hardship.
7. Can I take the Debtor Education Course when I take the Credit Counseling?
No. These cannot be completed at the same time. As required by law, you must complete the Credit Counseling before filing and the Debtor Education after filing—refer to the next question for exactly when.
8. Can my spouse and I take the course together?
Yes. You can both take the course together and separate certificates of completion will be issued for both of you. Some providers offer the courses at no additional charge for joint filers.
9. How do I get the certificates of completion?
The provider will email your bankruptcy certificate(s) to you and/or your attorney.
Feel a little better now? The good news is that if you’re reading this, chances are bankruptcy is almost behind you. Don’t delay your fresh start and register for the Debtor Education Course now for only $19. Put your bankruptcy in the past and get ready for a clean slate when it comes to your financial future!
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