Bankruptcy credit counseling can help people after they file for bankruptcy. More importantly, bankruptcy credit counseling is required under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. The Act makes bankruptcy credit counseling mandatory before and after filing bankruptcy. If the bankruptcy credit counseling isn’t completed before their bankruptcy is over, debts can’t be discharged. In other words, debts won’t be officially paid off or eliminated until the counseling is finished.
Post-Filing Debtor Education Is The Course People Need To Take
Post-filing debtor education consists of one session which cost anywhere from $50 to 100, depending on the credit counseling organization's fee. Nevertheless, individuals who can’t afford the education course can request a fee waver before the session starts. Also, the organization must be on the approved list of the U.S. Bankruptcy Court or the education course won’t be accepted. The post-filing debtor education course is approximately two hours long. However, the session may be provided over the telephone, online or in person. After the session is complete, individuals must obtain a certificate. This certificate is given to the U.S. Bankruptcy Court as proof that they finished the education course.
Post-Filing Debtor Education Course Teach Individuals To Avoid Piling Debts In The Future
The goal of bankruptcy is to eliminate or reduce debts. However, the U.S. Bankruptcy Court also wants to make sure individuals avoid piling up debts and filing bankruptcy again. Thus, the post-filing debtor education course allows counselors to teach people better ways to handle debt other than making minimum payments or avoiding creditors’ calls and letters. Credit counselors help people develop personal budgets. Budgets are a great way for people to plan their finances and pay their debts on time. In addition, credit counselors will teach individuals about managing money and using credit wisely. For example, people can avoid obtaining more credit cards than they need or pay with cash instead of using credit cards.
Seek Legal Assistance Concerning Bankruptcy
Anyone considering or going through bankruptcy need a lawyer by their side. Although bankruptcy credit counseling must be approved by the bankruptcy court, people still need to do some research to find the right counselor in their judicial district. Bankruptcy lawyers can assist individuals in obtaining required bankruptcy credit counselors.
