You probably understand some of what it takes to complete a bankruptcy, such as filing legal documents and gathering paperwork. However, there is much more to learn about the process.
The more you know about consumer bankruptcy (chapters 7 and 13), the smoother your experience may ultimately be. Learning about the educational requirements for filers is a good place to start and may save you some trouble later.
Credit counseling
Those seeking bankruptcy must complete a credit counseling course, usually within 180 days before filing a bankruptcy petition. You may take the course in person, online or even over the phone, but it must be from an agency approved by the U.S. Trustee Program.
After the course, you will receive a certificate of completion to file along with your bankruptcy petition. Make sure the certificate shows that you completed the counseling course within the 180-day timeframe.
Financial management course
In addition to credit counseling, bankruptcy filers must complete a debtor education or financial management course to complete their bankruptcy. The class helps you learn how to budget your income and manage your finances responsibly to avoid further financial problems.
Unlike the credit counseling requirement, debtor education must be completed after you file for bankruptcy. Failure to complete the course could interfere with your case and fail to relieve you of your debt.
Next step? Learn about the law
Completing these courses is not the only requirement associated with bankruptcy protection. If you live in Indiana and are considering a Chapter 13 or 7 bankruptcy, ensure you understand state bankruptcy laws before you file.
An experienced representative can provide additional guidance and legal knowledge throughout your case.
