Seeking debt relief through bankruptcy is stressful on its own. Learning you must also undergo mandatory education can ramp up your anxiety.
Try not to worry. Fulfilling the education requirements is probably easier than you anticipate, especially when you understand your obligations.
Before filing
Before you can file, you must complete a credit counseling course from an approved provider. The course aims to help you better understand your financial situation, work on a budget and explore alternatives to bankruptcy.
The session typically takes about two hours and can be completed online, by phone or in person. During the session, you review your finances with a counselor and explore options like debt consolidation or repayment plans.
After filing
After you file for bankruptcy, you must participate in a financial management course (debtor education course). It focuses on improving economic awareness and giving you the necessary tools for a fresh financial start.
This course can be completed in person, via phone or online. It covers topics like setting financial goals, managing money and using credit wisely.
Certificates of completion
You are required to file a certification of completion for both the credit counseling and debtor education courses with the appropriate court. In the New Albany area, you would file them with the U.S. Bankruptcy Court for the Southern District of Indiana.
Failing to complete the courses or file the certifications can result in the dismissal of your bankruptcy without a debt discharge.
While the education requirements are not unduly complicated, other bankruptcy pitfalls often lie in wait. Consider obtaining legal guidance to avoid preventable errors, especially when completing and filing complex documents.
