after taking bankruptcy training course what is the next step?

Full Answer

When do I take the bankruptcy course?

The course is taken after your bankruptcy has been filed but before you receive your discharge. The financial strategies you learn will help ensure your success after your bankruptcy is over.

Which credit counseling course do I take when I file bankruptcy?

When you file for bankruptcy, you'll complete two courses—a credit counseling course and a debtor education course. If you're unsure which to take or how to find approved providers, these basics will help: You'll take the credit counseling course before bankruptcy. You'll take the debtor education course after filing your case.

What is the second course in the bankruptcy process?

The second course is a financial management session, which is more educational. The budget exercise is intended to give you experience planning a budget for use after your bankruptcy. Is it possible to fail the course? No, you cannot fail the course.

What is the debtor education course in bankruptcy?

The purpose of the debtor education course is to teach you how to manage money and use credit wisely after bankruptcy. If you don't complete the debtor education requirement, the court won't issue a discharge in your bankruptcy. Read on to learn more about the debtor education course requirement in bankruptcy.

What is the next step after bankruptcy?

Your Debts Will Be Discharged In both Chapter 7 and Chapter 13 cases, you will get a discharge order from the bankruptcy court. This order stops creditors from taking any collection actions against you in the future.

What happens after bankruptcy is discharged?

Following a bankruptcy discharge, debt collectors and lenders can no longer attempt to collect the discharged debts. That means no more calls from collectors and no more letters in the mail, as you are no longer personally liable for the debt. A bankruptcy discharge doesn't necessarily apply to all of the debt you owe.

How long does it take for a bankruptcy to become final?

four to six monthsA Chapter 7 bankruptcy can take four to six months to do, from the time you file to when you receive a final discharge – meaning you no longer have to repay your debt. Various factors shape how long it takes to complete your bankruptcy case.

How many bankruptcy courses are there?

Bankruptcy Credit Counseling and Debtor Education Courses: A brief overview. Before filing a Chapter 13 bankruptcy or a Chapter 7 bankruptcy, you will be required to complete two courses before you can receive your bankruptcy discharge.

Can you get loans after bankruptcy?

Bankruptcy can severely damage your credit. But if you need financing, you may still be able to get a personal loan after bankruptcy. Your ability to qualify depends on whether you filed for Chapter 7 or Chapter 13 bankruptcy proceedings and how your credit score is affected.

How do I rebuild my credit after bankruptcy?

7 Easy Ways To Rebuild Your Credit After BankruptcyCheck Your Credit Report. ... Monitor Your Credit Score. ... Practice Responsible Credit Habits. ... Get a Secured Credit Card. ... Consider a Credit-builder Loan. ... Utilize a Co-signer. ... Ask to Become an Authorized User.

How will I know when my bankruptcy is discharged?

The bankruptcy is reported in the public records section of your credit report. Both the bankruptcy and the accounts included in the bankruptcy should indicate they are discharged once the bankruptcy has been completed. To verify this, the first step is to get a copy of your personal credit report.

How long after filing bankruptcy can you buy a house?

To qualify for a traditional mortgage, which may give you the best rate, you must meet the following requirements: have been discharged from bankruptcy for at least two years and one day. have at least one year of re-established credit showing on two credit items (credit card, car lease, loan, etc.)

How long after filing bankruptcy can you buy a car?

After you submit your petition, the trustee will review the filing and schedule your meeting of creditors. This is usually around a month after your filing date, but it could be longer. Then, you will wait about 60 days further for the full discharge. After this occurs, you can buy a car immediately, if necessary.

What is debt education?

The purpose of debtor education is to provide you with the knowledge and skills to take control of your financial future. The course is taken after your bankruptcy has been filed but before you receive your discharge. The financial strategies you learn will help ensure your success after your bankruptcy is over.

Is borrower a debtor?

If you're a debtor, you are indebted to someone else. Sometimes, a debtor refers to someone who files for bankruptcy. A borrower and debtor are nearly interchangeable terms. A borrower is in debt to a lender or financial institution when they borrow money.

Why do you think the law requires a debtor to receive credit counseling prior to being allowed to file for bankruptcy?

The bankruptcy counseling and debtor education requirements were enacted to ensure that consumers have exhausted all other options and reduce the likelihood of a second visit to the bankruptcy court. The U.S. government must approve counseling organizations to qualify.

Why does my credit score improve after bankruptcy?

Credit scores improve because there are no more missed payments and discharged accounts show a zero balance. After Chapter 7 and Chapter 13 bankruptcy is filed, you will get credit card offers in the mail. These offers can be for secured credit cards, sometimes called prepaid cards, which require a cash deposit.

How many points can you get from bankruptcy?

Generally, a decrease between 100 to 200 points can be expected. The good news is that you can begin rebuilding your credit as soon as your bankruptcy discharge is entered. It's possible to have a better score within 1–2 years of filing.

How long does a Chapter 13 bankruptcy stay on your credit report?

A completed Chapter 13 bankruptcy stays on your credit report for 7 years after the filing date, or 10 years if the case was not completed to discharge . As a result, filing bankruptcy will initially lower your credit score. How much your credit score will drop depends on how high or low it was before bankruptcy.

What happens when you file Chapter 7?

As soon as you file your Chapter 7 bankruptcy, you are given a case number and a bankruptcy trustee is assigned to your case. The bankruptcy trustee will oversee your bankruptcy filing, will review your bankruptcy forms, and may ask for additional documents to verify your information.

What is the term for protection from creditors after bankruptcy?

Protection from your creditors begins immediately after filing for Chapter 7 or Chapter 13 bankruptcy. This is called the automatic stay. Once you file and the automatic stay takes effect, your creditors are not allowed to take collection action against you.

How long does it take to pay bankruptcy fees?

The entire fee is due within 120 days after filing. If the bankruptcy court approves your application, it will grant an Order Approving Payment of Filing Fee in Installments. Your installment payment due dates will be in that order. You must pay all installments on time or your case is at risk of being dismissed.

How long does it take to pay Chapter 7 bankruptcy?

You can ask to make four installment payments. The entire fee is due within 120 days after filing.

What is the second course in bankruptcy?

The second course is required as part of your bankruptcy. The purpose of debtor education is to provide you with the knowledge and skills to take control of your financial future. The course is taken after your bankruptcy has been filed but before you receive your discharge.

How long does it take to complete a debtor education course?

The course is required to take a MINIMUM of 120 minutes (2 hours) to complete. The course is timed, and you cannot finish early. Take your time and spend the full two hours on the course material. All debtor education providers have the same time requirement.

What is the second course in credit counseling?

The second course is a financial management session, which is more educational.

Can you get a bankruptcy certificate if you are referred to a different provider?

Yes, even if you were referred to a different provider, the certificate you receive after completing the BE Adviser debtor education course is accepted everywhere, by all attorneys and by all bankruptcy courts.

How long does debtor education last?

Regardless of the method of instruction, the course will typically last at least two hours. If you attend the course in person, an instructor will provide you with course materials and teach you in a class setting.

What happens if you don't complete debtor education?

If you don't complete the debtor education course within the specified deadlines, the court will typically close your bankruptcy case without a discharge. This means that if you want to wipe out your debts, you will need to file a motion, pay the necessary fees, and ask the court to reopen your case so that you can file ...

How to get discharged from Chapter 7?

To receive a discharge in Chapter 7 or Chapter 13 bankruptcy, you are required to take a debtor education course after you file your case. The goal of the debtor education requirement is to educate you on making smart financial choices so that you won't have to seek bankruptcy relief in the future. When you take the debtor education course, you ...

How much is a reasonable fee for debtor education?

But the new rules published by the Executive Office for U.S. Trustees (EOUST) state that $50 or less is a reasonable fee. If a debtor education provider wants to charge more than $50, it has to get approval from the EOUST. (Learn more about the new debtor education rules .) Fee waivers.

What is debtor education?

The purpose of the debtor education course is to teach you how to manage money and use credit wisely after bankruptcy. If you don't complete the debtor education requirement, the court won't issue a discharge in your bankruptcy. Read on to learn more about the debtor education course requirement in bankruptcy.

Do you have to take a test if you take a course over the phone?

If you complete the course over the phone, you will usually receive a workbook (or other learning materials) to follow during the session. In addition, if you take the course online or over the phone, you must also complete a test.

Do you have to take debtor education before discharge?

With a few exceptions, all Chapter 7 and Chapter 13 bankruptcy debtors must complete a course in debtor education before they can receive a discharge. (Learn more about the exceptions to the debtor education requirement .) you don't have an adequate debtor education course available in your district (this is a very rare occurrence).

How long do you have to take bankruptcy classes?

How long do I have to take it after filing for bankruptcy? A: In a chap­ter 7 case, you must take the debtor edu­ca­tion post-​​bankruptcy class (1) after you file your peti­tion for bank­ruptcy and (2) within 45 days after your first meet­ing date with your cred­i­tors and bank­ruptcy trustee.

What is pre filing bankruptcy?

The pre-​​filing bankruptcy credit counseling course is also known as a pre-​​petition counseling session or a budget briefing. You will be required to provide a certificate of completion showing you have completed the bankruptcy credit counseling course prior ...

What is the bankruptcy abuse prevention and consumer protection act?

A: The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 includes two provisions mandating financial counseling and education: Before filing for bankruptcy, consumers are required to have a briefing on the alternatives to bankruptcy; and before receiving a bankruptcy discharge a debtor is required to complete an instructional course concerning personal financial management. These provisions were included to provide debtors in bankruptcy with the skills and tools needed to potentially avoid future financial problems.

What is the pre discharge debtor education course?

The debtor education course is also known as the personal financial management course or the post-​​filing debtor education course, and completion of this course is required ...

Does Access and BKClass protect your personal information?

A: Yes, Access and BKClass Inc. are committed to maintaining your privacy and online confidentiality, including the use of special encryption to protect your personal information. Please see our Privacy Policy for more information. Back to top.

Is Access Counseling approved by the EOUST?

A: Yes. Both Access and BKClass Inc. have been approved by the Executive Office for the United States Trustees (EOUST). Back to top. Q: In what states are Access Counseling Inc. (Access) and BKClass Inc. authorized by the Executive Office for the United States Trustees ( EOUST ) to issue certificates that satisfy the court requirements ...

What is bankruptcy training?

Training as a Bankruptcy Petition Preparer is for educational purposes only to provide you with the necessary tools to properly fill out the Bankruptcy forms. After training, when you prepare Bankruptcy petitions and schedules for debtors you are completely responsible for your own actions.

How many tries are there in the bankruptcy quiz?

Quiz 1 pertains to Bankruptcy Petition Preparer and requires a 100% to pass. You get 3 tries. Quiz 2 requires 80% to pass and you get only 2 tri es. There is a 30-question Final to receive your Certificate. You must pass the Final with a 90% or better to receive a certificate.

Is bankruptcy preparation training good?

You may have already heard of other Bankruptcy Petition Preparer training programs. Some are good and some are not so good. A good Bankruptcy Petition Preparer training program not only trains you on the basics of using Bankruptcy software, but also provides you with a sufficient amount of information pertaining to Bankruptcy Petition Preparer Do's ...