The Bankruptcy Court requires debtors who file for bankruptcy protection to complete a financial management course before a discharge is granted for your case. Part of the reason for the requirement is due to changes made in bankruptcy laws in 2005.
The credit counseling and financial management requirements are there to educate and inform debtors on various aspects of their finances. The courses are aimed to help consumers make informed choices about their budget, obtaining credit, and other finance issues.
The courses are fairly simple to complete but debtors who are considering bankruptcy should review requirements carefully for these courses. There are financial management and credit counseling courses available by agencies approved by the Bankruptcy Court. If you are not sure which agency you should obtain counseling from, contact your bankruptcy attorney to obtain information.
Make sure you obtain a certificate of completion from the agency. You'll need to present the document when you file. Keep in mind of the timetable of your filing; you should obtain your credit counseling within 180 days of filing your bankruptcy petition.
There is a financial management course that should be completed prior to receiving your discharge. This can be completed within 6 months of your bankruptcy filing, but many have completed the course prior to the meeting of the creditors or as soon as 10 days after their bankruptcy case has been filed. Having this course completed soon after your case is filed with the court helps avoid conflict in getting eligible debt discharged.
The counseling courses have helped many gain a better understanding in how to manage their finances. Plus, consumers gain financial tools to help them transition into the fresh start they have been seeking.