For many, making the difficult decision to file for bankruptcy is something that many may not want to make. However, if you have elected to declare bankruptcy to help alleviate your overwhelming debt, it’s important to understand what you can expect during this process. One aspect that many are unfamiliar with is the debtor education courses that will take place towards the end of your case. As such, the following blog explores what you must know about these matters, including why these are necessary, if they are mandatory, and when you must complete these courses. You’ll also discover the importance of working with Franklin County bankruptcy lawyers to discuss your options and assist in answering any questions you may have regarding this process.
What Is the Function of Debtor Education in Bankruptcy?
If you have already filed for bankruptcy, you know that you must complete a pre-filing credit counseling course before you are eligible to declare bankruptcy. It is imperative to understand that this course differs from your debtor education course.
The debtor education course is important as it helps teach those who have filed important money management and saving skills. This is critical to help filers avoid the need to pursue bankruptcy at a later date. The primary function is to help those who have gone through the bankruptcy process reap the full benefits of the financial fresh start they are given by providing them with the necessary tools and education to help prevent further financial difficulties at a later date.
Is This Process Mandatory and When Must I Complete It?
Debtor education courses, much like your pre-filing credit counseling, are mandatory as part of your filing. In fact, failure to complete these courses can result in the denial of your debt discharge. As such, you can incur additional expenses and fees, as well as the costs associated with reopening your case to formally complete it.
Generally, you’ll complete the education course towards the end of your bankruptcy case. This is required for both Chapter 7 and Chapter 13, though when you will complete the course will depend on which chapter you’ve filed. For example, you must complete the course within 60 days of the 341 meeting of creditors when filing Chapter 7, while you must complete this course before you make your last payment of your Chapter 13 case.
In order to ensure that this process has been completed, you’ll be required to submit Form 423, Certification About a Financial Management Course, as well as the certificate of completion you are provided when you finish the course.
As you can see, navigating the bankruptcy process can be incredibly difficult, which is why working with an experienced attorney is in your best interest. Our dedicated legal team will do everything in our power to help you through these complex matters to fight to help ensure you can navigate bankruptcy with ease. When you need help, do not hesitate to contact our team today to learn how we can represent you.
