In both Chapter 7 and Chapter 13 bankruptcy
Title 11 of the United States Code sets forth the statutes governing the various types of relief for bankruptcy in the United States. Chapter 13 of the United States Bankruptcy Code provides an individual the opportunity to propose a plan of reorganization to reorganize their financial affairs while under the bankruptcy court's protection. The purpose of chapter 13 is to enable an individual with a regular sourc…
You must complete it before receiving your debt discharge (the order that erases qualifying debt) unless you're exempt from taking the debtor education course. The practical financial management strategies taught in the class will help you avoid another bankruptcy filing.
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. The debtor education course must be taken by an approved provider.
All debtor education providers have the same time requirement. The debtor education course must be taken by an approved provider.
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:
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.
If you file for bankruptcy again prior the time limits, then you will not be entitled to a discharge, and your remaining debts will survive the bankruptcy.
Bankruptcy Official Form 423 informs debtors of their requirements to complete the second class. Officially, the class is called a “Financial Management Course.”
Chapter 7 bankruptcy is a legal debt relief tool. If you've fallen on hard times and are struggling to keep up with your debt, filing Chapter 7 can give you a fresh start. For most, this means the bankruptcy discharge wipes out all of their debt.
There is no limit to how many times you can file, but there are time limits between filing dates. You could file but not receive any debt discharge in some cases, so you need to be careful. The U.S. Bankruptcy Code determines the time limits based on what Chapter you file under.
Highlights: Most negative information generally stays on credit reports for 7 years. Bankruptcy stays on your Equifax credit report for 7 to 10 years, depending on the bankruptcy type. Closed accounts paid as agreed stay on your Equifax credit report for up to 10 years.
Financial Management Courses are courses that help students become successful in the world of Finance. These courses will equip you with the basic skills of Financial Management. In this course, students can: Understand the basics of Financial Accounting. Gain entrepreneurial skills.
Nondischargeable debt is a type of debt that cannot be eliminated through a bankruptcy proceeding. Such debts include, but are not limited to, student loans; most federal, state, and local taxes; money borrowed on a credit card to pay those taxes; and child support and alimony.
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.
After you file for bankruptcy protection, your creditors can't call you, or try to collect payment from you for medical bills, credit card debts, personal loans, unsecured debts, or other types of debt.
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...
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...
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...
If you file for Chapter 7 bankruptcy, you must take the debtor education course and file your certificate of completion (discussed below) with the...
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...
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...
When you complete the debtor education course, you must file a form called Debtor’s Certification of Completion of Postpetition Instructional Cours...
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.
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.
The second course is a financial management session, which is more educational.
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.
The course usually lasts for only two hours or so and can be completed online.
You will need to submit the certificate within 60 days of the date set for this meeting.
The purpose of the credit counseling course is to help a debtor review their finances and make sure that bankruptcy is the appropriate path for them to take. You will receive a certificate at the end of the course. Assuming that you decide to move forward with the bankruptcy filing, you will need to submit this certificate with your bankruptcy ...
The court will remind a Chapter 7 debtor about the requirement through a specific notice, but debtors filing under other chapters will not receive a notice.
If you are filing a joint petition with your spouse, each of you will need to meet the credit counseling and debtor education requirement separately. There are a few exemptions from this requirement, but they are narrow. For example, a member of the armed forces might be able to get a waiver, as might someone who is filing an emergency bankruptcy ...
The United States Bankruptcy Administrator Program, a bankruptcy estate administration program established by the federal judiciary, presently serves only the six federal judicial districts in the States of Alabama and North Carolina.
In Alabama and North Carolina, the bankruptcy administrator approves credit counseling and debtor education providers. Lists of approved providers for the six judicial districts in Alabama and North Carolina are maintained by the bankruptcy administrator for that district or bankruptcy court.
Credit counseling must take place before you file for bankruptcy; debtor education must take place after you file. Certificate of completion for both credit counseling and debtor education are required but before the filer’s debts can be discharged. Only credit counseling organizations and debtor education course providers ...
By law, the U.S. Trustee Program does not operate in Alabama and North Carolina; in these states, Bankruptcy Administrators approve pre-bankruptcy credit counseling organizations and pre-discharge debtor education course providers. The following is a list of Bankruptcy Administrator approved providers in Alabama and North Carolina.
Debtor Education Course Completion Deadlines. Here are the time limits for completing the course: Chapter 7. If you filed for Chapter 7, you have 60 days after the first date set for the meeting of creditors to complete the debtor education course and file the certification of completion with the court. Chapter 13.
The certificate proves that you received credit counseling from an agency approved by the U.S Trustee's office within the 180 days before you file your bankruptcy.
Before you can file for Chapter 7 or Chapter 13 bankruptcy, you must take a course from a nonprofit credit counseling agency to determine whether you can handle your debt load outside of bankruptcy without adding to what you owe. After filing the case, you must complete another course—debtor education. The debtor education course, sometimes called ...
The purpose of credit counseling is to see whether you need to file for bankruptcy or whether an informal repayment plan would get you back on your economic feet. The course is required even if it's evident that your debts are too high and your income is too low for a plan to work.
You were unable to obtain counseling within five days after requesting it. If you can prove that you didn't receive credit counseling for these reasons, you must certify that to the court and complete the counseling within 30 days after filing. You can ask the court to extend this deadline by 15 days.
Chapter 13. If you filed for Chapter 13 bankruptcy, you must complete the class and file the certification of completion before your last repayment plan payment or before you file a motion for discharge. If you miss these deadlines, the court will dismiss your case without prejudice.
However, counseling services are available by phone and online, so it's unlikely that approved debt counseling will ever be unavailable. You can also avoid this requirement if you certify to the court's satisfaction that: You had to file for bankruptcy immediately (perhaps to stop a wage garnishment or foreclosure).
Persons other than the debtor may pay for the instructional course, as long as such payments comply with applicable laws, regulations, and ethical requirements (such as state laws and rules concerning attorney ethics).
However, a currently approved provider must re-apply no later than 45 days before its current approval period expires, unless the USTP grants a written extension. Also, a provider must be ready to offer services by all requested methods of delivery (such as in-person, telephone, or Internet) immediately upon approval.
A: A debtor education provider may not increase its fees without prior USTP approval. To request approval to increase fees, a provider must submit an amended application setting forth the proposed increased fees, as well as the reason for the increase.
A: A provider must inform debtors that services are available for free or at a reduced rate, based on a debtor's ability to pay, before providing any information to or obtaining any information from a debtor, and before beginning a debtor education session. Fee waiver policies may vary by provider.
A: To assist individuals in finding a debtor education provider, the USTP maintains a list of approved providers on its Web site. The USTP cannot endorse or recommend any particular provider on its list of approved providers, or guarantee the quality of its post-filing debtor education instruction or services.
A: Yes. Persons other than the debtor may pay for debtor education, as long as such payments comply with applicable laws, regulations, and ethical requirements (such as state laws and rules concerning attorney ethics).
A: Yes. A debtor education provider, once approved, may request approval for additional judicial districts by submitting an amended application. The amended application shall list both the additional judicial districts for which approval is being requested, as well as the currently approved districts.
In a chapter 7 case, you must take the debtor education course: (1) after you file your bankruptcy case and (2) within 60 days after your first meeting date with your creditors and bankruptcy trustee. This meeting is also known as a Sec. 341 meeting (named after Sec. 341 of the Bankruptcy Code which requires it).
This meeting is also known as a Sec. 341 meeting (named after Sec. 341 of the Bankruptcy Code which requires it). In a chapter 13 or chapter 11 case, the debtor education course must be taken (1) after you file your petition for bankruptcy and (2) no later than the last payment you have to make as required by your bankruptcy plan, ...
Yes, Second Bankruptcy Course LLC is approved by the United States Trustee to issue certificates in compliance with the Bankruptcy Code. Approval does not endorse or assure the quality of a Provider’s services.
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.
CC Advising is approved in all U.S. States and territories, and not every provider is, so you definitely want to check to see whether the provider you choose is approved, either by the US Trustee’s office or by the Bankruptcy Administrators (in Alabama and North Carolina).
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.