how long to complete first bankruptcy course

by Horacio Denesik 10 min read

approximately 90 minutes

How long does it take to complete the Bankruptcy credit counseling?

This is true regardless of whether you file Chapter 7 or Chapter 13 bankruptcy. Chapter 7 Bankruptcy Timeline: About 100 Days-6 Months Total Of course, your own Chapter 7 bankruptcy timeline may vary. However, in most cases, it takes just over three months to complete.

What is first bankruptcy course?

Typically, most of our clients take an average of somewhere between 60 to 90 minutes to complete the entire session, but more or less time may be appropriate depending on your particular situation. While our course is not timed, you do want to make a good faith effort to fill out the financial questionnaire to the best of your ability.

When to complete the debtor education course after filing Chapter 13 bankruptcy?

When Do I Have to Complete the Debtor Education Requirement? Chapter 7 filers have 60 days after the 341 meeting of creditors to file the certificate. Chapter 13 filers must file the completion certificate before making the last Chapter 13 repayment plan payment. Keep in mind that missing the filing deadline is expensive.

How long does it take to get a bankruptcy discharge?

Jan 12, 2019 · Here’s a breakdown of these pre-filing steps: Gathering information: You’ll need to collect some documents, like your tax returns and paycheck stubs so you can submit... Taking credit counseling: This course has to be completed in the 180 days before your bankruptcy petition is filed with... ...

How much does Bothcourses cost?

How much does the course cost? Both courses may be taken online or over the telephone. The Online Credit Counseling Course is $20. The Online Debtor Education Course is $20.

How soon before credit counseling should I file bankruptcy?

within 180 daysIf you plan to file for bankruptcy protection, you must get credit counseling from a government-approved organization within 180 days before you file. You also have to complete a debtor education course before your debts can be discharged.

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

Why You Must Take Pre-Bankruptcy Credit Counseling Counseling is required even if it's pretty obvious that a repayment plan isn't feasible (that is, your debts are too high, and your income is too low) or you are facing debts that you find unfair and don't want to pay.

What is pre discharge debtor education?

About Pre-Discharge Education It prevents creditors or collection agencies from collecting debts through legal action or communication, such as phone calls, letters or personal contact.

What are the disadvantages of filing for bankruptcy?

Bankruptcy: Advantages and DisadvantagesDISADVANTAGESADVANTAGESBankruptcy will lower your credit until you work to rebuild itMissed debt payments, defaults, repossessions, and lawsuits will hurt your credit - bankruptcy can often be the easier option9 more rows•Apr 19, 2021

Which is better Chapter 7 or Chapter 13?

Most consumers opt for Chapter 7 bankruptcy, which is faster and cheaper than Chapter 13. The vast majority of filers qualify for Chapter 7 after taking the means test, which analyzes income, expenses and family size to determine eligibility.

What are two things creditors can do if a debtor defaults on a debt?

Either way, if you or the business can't pay back the debt, a secured creditor can repossess or foreclose on the secured property, or order it to be sold, to satisfy the debt.

What is a Chapter 13?

A chapter 13 bankruptcy is also called a wage earner's plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years.

Why would businesses large and small choose Chapter 11 bankruptcy?

Chapter 11 bankruptcy is typically used by companies facing significant financial difficulties. It provides a restructure to the bankrupt business's debts and creates a manageable reorganization plan and repayment plan.Jun 30, 2021

Can you add debt to a Chapter 7?

If you file a Chapter 7 case and find out about it before the case is closed, you can have your attorney file an amendment to add the creditor and all will be well.May 1, 2013

Is borrower a debtor?

What Is a Debtor? A debtor is a company or individual who owes money. If the debt is in the form of a loan from a financial institution, the debtor is referred to as a borrower, and if the debt is in the form of securities—such as bonds—the debtor is referred to as an issuer.

What Is The Debtor Education Course Requirement?

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...

Who Must Take The Debtor Education Course?

With a few exceptions, all Chapter 7 and Chapter 13 bankruptcy debtors must complete a course in debtor education before they can receive a dischar...

Approved Debtor Education Course Providers

You must take the debtor education course from a provider approved by the U.S. Trustee (or the Bankruptcy Administrator if you live in Alabama and...

When Do You Have to Complete The Debtor Education Course?

If you file for Chapter 7 bankruptcy, you must take the debtor education course and file your certificate of completion (discussed below) with the...

How Much Does The Debtor Education Course Cost?

The cost of the debtor education course will depend on the provider you select. But the new rules published by the Executive Office for U.S. Truste...

What Happens During The Debtor Education Course?

You can usually take the debtor education course in person, over the phone, or on the Internet. Regardless of the method of instruction, the course...

Filing Your Certificate of Completion

When you complete the debtor education course, you must file a form called Debtor’s Certification of Completion of Postpetition Instructional Cours...

What does a financial counselor do?

Specifically, the counselor will be analyzing your current financial situation, discussing the factors that caused that financial situation, and assist in developing a plan to respond to those financial problems without incurring negative amortization of debt.

What does a credit counselor do?

A credit counselor uses your budget information to determine whether you have other options available to resolve your debt issues. They are particularly interested in giving you tips and tricks to stay out of debt and put you on the path to success moving forward.

Is counseling confidential?

Your counseling session is kept completely confidential, so being cooperative and answering the counselor’s questions honestly helps speed the process along. Keep in mind that a real person is typing responses back to you, so you may need to wait a few moments for them to respond.

Do you have to take credit counseling before filing for bankruptcy?

The first credit counseling session is generally required to be completed prior to filing for bankruptcy. Many clients take our course before they even meet with a bankruptcy attorney. However, there is no requirement that you have to be considering bankruptcy or that you file bankruptcy in order to take our course.

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 ...

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.

What happens if you don't complete the test?

If you don't complete the test in a satisfactory manner or receive a score of less than 70%, the provider must communicate with you directly. For telephonic courses, the instructor must contact you either in person or by phone. For online courses, the communication can be by email, live chat, or phone.

How long before bankruptcy do you have to take credit counseling?

Taking credit counseling: This course has to be completed in the 180 days before your bankruptcy petition is filed with the court.

How long does it take to file Chapter 7?

Let’s Summarize. Most Chapter 7 bankruptcy cases take between 4 - 6 months to complete after filing the case with the court. The order erasing eligible debts can be granted as early as 90 days from the date the case was filed. No-asset cases are typically closed a couple of weeks after the discharge date.

What is means test in bankruptcy?

The means test shows the bankruptcy court that you’re eligible for debt relief because your monthly income isn't enough to pay your unsecured debts in a Chapter 13 bankruptcy. Unsecured debt includes credit card debt, medical bills, and personal loans. Not all unsecured debts are dischargeable.

How long does it take to get a 341 meeting?

341 meeting + 60 days = Deadline for creditors to object to having their debt discharged. Creditor objections are not very common in typical Chapter 7 cases, but they do happen. 341 meeting + 45 days = Deadline to deal with secured debts, like car loans (if you want to keep the car).

Is Chapter 13 bankruptcy better than Chapter 7?

Depending on the type of debt you have, this type of bankruptcy may provide more debt relief than a Chapter 7 filing. It’s always best to speak to a bankruptcy attorney about a Chapter 13 filing, as there are many moving parts in the Chapter 13 bankruptcy process.

Is Chapter 7 bankruptcy right for everyone?

If you’re struggling to make ends meet and just can’t make a dent in your credit card debt, keep learning more about your bankruptcy options. While it’s not right for everyone, Chapter 7 bankruptcy helps thousands of families clean up their credit report and get back on their feet every year.

What is the 341 meeting?

First, the clerk’s office assigns a case number, a judge, and a bankruptcy trustee to the case. Then it schedules the 341 meeting of creditors. The date of the 341 meeting determines a number of important deadlines for the bankruptcy case.

How many courses do you need to file for bankruptcy?

A person who files for bankruptcy must take two educational courses before receiving a bankruptcy discharge wiping out qualifying debt. Before you can file for Chapter 7 or Chapter 13 bankruptcy, you must consult with a nonprofit credit-counseling agency to see whether you can feasibly handle your debt load outside of bankruptcy, ...

What is the second course in bankruptcy?

The Second Course: Post-Bankruptcy Debtor Education. Bankruptcy filers must take a second course—called debtor education —after filing for bankruptcy. The debtor education course provides the filer with financial management tools, such as tips for creating a budget and rebuilding credit after bankruptcy.

What is debtor education?

The debtor education course provides the filer with financial management tools, such as tips for creating a budget and rebuilding credit after bankruptcy.

How long does it take to get a credit counseling certificate?

You'll prove that you've taken the credit counseling course by filing the certificate of completion along with your bankruptcy paperwork (no later than 15 days after your bankruptcy filing date). You'll also receive a copy of any repayment plan you may have worked out with the agency.

What is a counseling agency?

The counseling agency usually prepares a budget based on your income and expenses, and then review your options for repaying the debt. In most cases, the agency confirms that you don't have any feasible options for dealing with the debt other than filing for bankruptcy.

What is the first course to take before filing for bankruptcy?

The first course is called the pre-filing credit counseling course which must be taken through a provider that is approved to offer the course in the district you file.

How long does it take to complete bankruptcy counseling?

The bankruptcy credit counseling course must be completed 180 days before you file your bankruptcy petition . The second course is called the debtor education course or the financial management course.

How much does debtor education cost?

The Debtor Education Course usually costs between $15 - $50 depending on the provider you choose to complete it with. The Executive Office for the U.S. Trustees (EOUST) has set a figure limiting the fee to the course to be under $50.

How long does it take to get credit counseling before filing for bankruptcy?

This has to be done in the 6 months before the case is filed.

What happens if you fail Chapter 13?

Failing to complete the course will prevent you from getting your discharge. This means your bankruptcy case will close and you will still be liable for whatever debts did not get paid through your Chapter 13 plan. If this happens, you will need to pay money to reopen the case and provide the court with a certificate of completion showing ...

How to get a certificate of completion for a course?

After the course is completed, you will get a certificate of completion. The certificate of completion can be faxed, emailed, or mailed to you. Once you receive the certificate, you will need to file it with the court. You can either do this electronically or go to the Clerk’s office to give it to them personally/mail it to the court.

How long does a Chapter 13 bankruptcy last?

A Chapter 13 bankruptcy can last anywhere between 3-5 years and although you don’t need to complete it until sometime before your last plan payment, it's best to do it sooner rather than later so you don’t forget.