· The confusion doesn’t entirely end there, however. In order to fulfill the credit counseling requirement before you file for bankruptcy, you must participate in a credit …
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A: The pre-filing bankruptcy credit counseling course takes a minimum of 60 minutes to complete. The pre-discharge debtor education course takes a minimum of 2 hours.
The certificate is valid for 180 days, meaning that you will have up to 180 days to file for bankruptcy. Wait longer than that and you will have to retake the pre-filing counseling.
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.
the federal governmentthe federal government offer consumer credit protection.) transactions, the vast majority of credit transactions involve mutual gains. With credit, the borrower is able to pur- chase something now that may have value now and/or in the future.
The Executive Office of the United States Trustee (“EOUST”) states that “sessions should last approximately 60 minutes .”.
You have 6 months to take the pre-filing course. Once your forms are filed with the bankruptcy court, you’ll want to get the second course done within 60 days of your meeting of creditors (or before the meeting, if you want). The courses are offered by nonprofit organizations that are pre-approved by the U.S. Trustee (or the bankruptcy administrator).
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During the credit counseling session, you'll speak with a credit counselor about your financial situation. Once done, they may recommend that you consider a repayment plan but oftentimes they'll simply provide you with the bankruptcy certificate to submit to the court along with your bankruptcy forms. The certificate is how you prove ...
As a result, the debtor education requirement is a 2-hour course. When done, you'll receive a certificate of completion that you have to submit to the bankruptcy court.
You get the certificate of completion after you’ve completed the course. It’s good for 180 days.
Is credit counseling required for Chapter 7? Yes, individuals who file any type of bankruptcy (Chapter 7, Chapter 13, or Chapter 11) have to complete this requirement. The credit counseling requirements exist to make sure that everyone filing bankruptcy knows about all available debt relief options .
You must then complete counseling within 30 days of filing for bankruptcy. It’s possible to get this deadline extended by 15 days upon request.
Bankruptcy counseling helps the courts determine the best course of action. The courts might decide that bankruptcy is your best option. Or they might decide your income is sufficient for participating in a court-ordered repayment plan.
The US government wants people to file bankruptcy only when it’s absolutely necessary. The purpose of counseling is to make sure you have no other options.
You must complete a court-ordered debt repayment plan. The plan will usually last for three to five years. But if you fail to complete the repayment plan, you might lose your belongings and assets.
However, remember that your credit rating will take a hit. And it will remain on your credit report for 7 to 10 years after you file. You’ll also have to work to rebuild your credit.
That’s why it’s important to change your spending habits following the bankruptcy. You want to avoid ending up in more financial trouble.
You’ll receive a certificate of completion for participating in counseling. The certificate is proof that you fulfilled the requirement.