what if i am late taking debtors education course

If you don’t complete the debtor education course before the deadline passes, the court will typically close your bankruptcy case but not discharge you. So, to wipe out your debts, you must file a motion, pay the required fees and ask the court to reopen your case so that you can file the certificate and obtain a discharge.

Full Answer

What happens if I don’t pass my debtor education course?

If you’re filing Chapter 7 or Chapter 13 bankruptcy you’re required to complete a debtor education course (sometimes called a financial management course) before you can receive your bankruptcy discharge. However, failure to take the course or to pass it could mean that your bankruptcy case is closed without a discharge.

How can the debtor education requirement help you avoid another bankruptcy?

The practical financial management strategies taught in the class will help you avoid another bankruptcy filing. The first course—the credit counseling course taken before filing for bankruptcy—evaluates whether options other than bankruptcy are available to you. When Do I Have to Complete the Debtor Education Requirement?

Can I complete debtor education and credit counseling in the same session?

Q: May I complete my debtor education and credit counseling requirements in the same session? A: No, the Bankruptcy Code requires individuals to complete credit counseling before filing for bankruptcy, subject to certain exceptions, and requires debtor education to be completed after the bankruptcy case is filed.

What is the debtor education course?

The debtor education course is the second course. 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.

What is the obligation of a provider to inform debtors of the debtor's ability to pay?

Who pays for the instructional course?

Can debtor education providers increase their fees?

Can joint filers attend the same debtor education session?

Does the USTP endorse or recommend debtor education providers?

Can you pay for debtor education?

Can debtors request additional judicial districts?

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How do I become a debtor?

Is a Customer a Creditor or Debtor? Bank customers are debtors if they have a loan or owe the bank. Customers that buy goods or services and pay on the spot are not debtors. However, customers of companies that provide goods or services can be debtors if they are allowed to make payment at a later date.

What does Case closed without discharge mean?

A case closed without discharge is not dismissed, and it is not discharged. It can happen in several ordinary circumstances. Chapter 13 cases that follow closely after the Debtor receives a Chapter 7 discharge will not be discharged.

What is the difference between dismissed and discharged?

According to the United States Courts, the goal should be a discharge because this means the court accepts your bankruptcy case and forgives your debts. A dismissal occurs when something goes wrong with your case and the court is unable to finalize the bankruptcy claim.

How long is Chapter 7 on credit report?

10 yearsDebts such as child support, alimony, most student loans, and certain tax debts are typically not discharged. A Chapter 7 bankruptcy is typically removed from your credit report 10 years after the date you filed, and this is done automatically, so you don't have to initiate that removal.

What does it mean when the case is closed?

Phrase. case closed. Expressing finality, that that preceding material is meant as final, not subject to amendation or variation. quotations ▼ Used other than figuratively or idiomatically: A case is closed; specifically, a police investigation or similar is resolved.

Is case closed the same as dismissed?

When a case is dismissed with prejudice, it's closed for good. Neither party can reopen the case at a later date, and the matter is considered permanently resolved. On the other hand, dismissing a case without prejudice leaves the door open for the case to be reopened down the road.

What does it mean for a rule to be discharged?

A discharge is a type of sentence imposed by a court whereby no punishment is imposed.

How do you close a court case?

Further, the case can be closed by filing a quashing petition. This quashing will be of the FIR. I would also recommend to get in touch with us for further better discussion.

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What happens if you don't pass debtor education?

If you’re unable to pass the debtor education course and your case is closed without a bankruptcy discharge, it will cost you.

What does failure to take a course mean?

However, failure to take the course or to pass it could mean that your bankruptcy case is closed without a discharge. Fortunately, there are a few things you can do to fix the situation if you fail the course.

Can you take the court in Chapter 13?

In a Chapter 13 case, you must take the court before you make your final plan payment. This is why it’s important that you schedule your debtor education course as soon as possible so that if you fail it you can retake the course and still get your discharge.

What is the obligation of a provider to inform debtors of the debtor's ability to pay?

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.

Who pays for the instructional course?

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).

Can debtor education providers increase their fees?

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.

Can joint filers attend the same debtor education session?

A: No. Joint filers may attend the same debtor education session. The provider must provide personalized instruction to each individual and must issue a separate certificate to each individual.

Does the USTP endorse or recommend debtor education providers?

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.

Can you pay for debtor education?

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).

Can debtors request additional judicial districts?

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.

When Do I Have to Complete the Debtor Education Requirement?

Chapter 13 filers must file the completion certificate before making the last Chapter 13 repayment plan payment.

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 Much Does the Debtor Education Course Cost?

If your household income is below 150% of the poverty line, you'll be eligible for a fee waiver. Otherwise, $50 or less is reasonable.

What courses do you need to take to file for 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:

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.

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.

How many pages does bankruptcy take?

Bankruptcy is an unusual area of law because it's essentially a qualification process. The laws provide instructions for completing a 50- to 60-page bankruptcy petition, and because all rules apply in every case, you can't skip a step.

How long do you have to take the bandaid course after bankruptcy?

This exception is only a temporary "band-aid," and you will be required to complete the course within 30 days of filing your bankruptcy (although the court may grant you an additional fifteen days), unless you prove to the court that one of the other exceptions applies.

Why do you have to file bankruptcy?

You had to file bankruptcy immediately to avoid substantial, immediate harm. This is the "exigent circumstances" exception. You must have contacted an agency that provides the credit counseling course, were unable to complete the course within seven days of contacting the agency, and had to file your bankruptcy immediately. Exigent circumstances mean that you had to file your bankruptcy right away to prevent some type of significant harm, such as a wage garnishment or sheriff sale.

What is required to file bankruptcy?

When you file a consumer bankruptcy under Chapter 7 or 13 of the Bankruptcy Code, you are required to complete a credit counseling course before you file your bankruptcy and a debtor education course after you file but before you receive your discharge.

Do you have to file bankruptcy immediately?

This is the "exigent circumstances" exception. You must have contacted an agency that provides the credit counseling course, were unable to complete the course within seven days of contacting the agency, and had to file your bankruptcy immediately.

Can you take bankruptcy classes online?

The United States Trustee or bankruptcy administrator determines that no courses are available in your district. This exception isn't likely to apply because you can complete the courses in person, over the telephone, or online, meaning they are available to practically everyone.

Can you waive credit counseling?

There are exceptions to the counseling requirements. However these exceptions only apply in very specific circumstances. Below are the reasons for which you may request that the court to waive your credit counseling and debtor education course requirements.

What is the obligation of a provider to inform debtors of the debtor's ability to pay?

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.

Who pays for the instructional course?

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).

Can debtor education providers increase their fees?

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.

Can joint filers attend the same debtor education session?

A: No. Joint filers may attend the same debtor education session. The provider must provide personalized instruction to each individual and must issue a separate certificate to each individual.

Does the USTP endorse or recommend debtor education providers?

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.

Can you pay for debtor education?

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).

Can debtors request additional judicial districts?

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.