It is required for anyone wanting to file for bankruptcy that they take prebankruptcy credit counseling and predischarge debtor courses. Both courses are taken at different times in the process. Credit counseling, the first course, must be taken before filing for bankruptcy, whereas the debtor education course after filing. Sometimes, an additional class on managing personal finance must be taken before a discharge is issued at the end of the applicant’s case. Very few people qualify for certification and must later bring in an attorney.
We will briefly go over the Prebankruptcy Credit Counseling Course and the Predischarge Debtor Course in this short read.
Prebankruptcy Credit Counseling
This course will provide you with an idea of whether you really need to file or an informal payment process would be best for your economic revival.
Guiding is required regardless of there being a seemingly practical payment. Or you are confronting obligations that you find unjustifiable and don’t have any desire to pay.
The guiding office generally readies a spending plan dependent on your pay and costs and afterward audits your repayment choices. Mostly, the organization informs you that you don’t have any feasible alternatives for repayment; you must, hence, file.
Bankruptcy law requires just that you take an interest in the counseling—not that you oblige whatever the office proposes. Regardless of whether a repayment plan is attainable, you’re not needed to consent to it. Be that as it may, if the organization concocts an arrangement, you should record it alongside your other bankruptcy documents.
Browse through these results to find the prebankruptcy course that suits you.
Predischarge Debtor Education
This course is to be taken after filing for bankruptcy.
The second class, an individual budgetary administration course, is known by a few names — including the Predischarge Debtor Course, the “second” course, and the post-documenting course.
You must enroll in a course offered by an organization affirmed by the Office of the U.S. Chapter 11 Trustee. If you can’t manage the cost of the course, you will be permitted to pay what you can bear on a sliding scale. Course costs differ; however, the Executive Office for U.S. Trustees (EOUST) says that courses costing under $50 are manageable. Any bankruptcy instruction supplier that needs to charge more than that needs endorsement from EOUST.
You can take the course face-to-face, over the telephone, or on the web, and the teacher will give every single required material. On-the-web and telephone courses require agreeable consummation of a test.
You can take the pre-release course together or independently on the off chance that you are hitched, and both you and your mate are experiencing liquidation together. Chapter 11 courts require fruitful fulfillment of the two courses before your obligations can be released.
For detailed information on these courses and other processes involved, visit the official United States Courts website.