what is the post filing bankruptcy course?

What steps must you take before filing for bankruptcy?

Bankruptcy is a very serious matter that requires a great deal of forethought and planning. Thus, before filing for bankruptcy, it is important that a debtor take the following steps to prepare: Compile financial records: Compile a list of property, debts, assets, income, liabilities, and expenses. Keep in mind that debts, such as federal ...

What to consider before filing bankruptcy?

Before filing for bankruptcy, consider some of the following alternatives: Negotiate with your lenders. Whatever form of debt you hold, it’s possible to negotiate with your creditors. You might be able to get a one-month extension on your car payment, have some of your interest-only credit card debt forgiven or obtain a mortgage modification. ...

What is a pre filing bankruptcy course?

This counseling session will focus on things like:

• personal financial management
• budgeting
• how interest rates work
• rebuilding your credit report
• using credit cards

What to expect after filing bankruptcy?

What Happens After Bankruptcy?

• Fresh Start. Your new life begins after the court notifies your creditors that you received a discharge order wiping out your qualifying debts.
• Credit After Bankruptcy. Most people understand that their credit will take a hit for a time after bankruptcy—and there's no denying that the change will likely affect your financial life.
• Rebuilding Process. ...

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.

What happens when you file bankruptcy for the second time?

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.

What is a 423 form?

Bankruptcy Official Form 423 informs debtors of their requirements to complete the second class. Officially, the class is called a “Financial Management Course.”

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.

Is it true that after 7 years your credit is clear?

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.

How soon after bankruptcy can I buy a car?

Ideally, you should at least wait about six months before you apply for an auto loan. That gives you time to repair your credit and rebuild credit, too. You make payments on any loans you have left to build a positive credit history. If possible, you can get a secured credit card to build more credit history faster.

What is financial management course?

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.

What can you not do after filing bankruptcies?

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.

Which is better Chapter 7 or Chapter 13?

Most people prefer Chapter 7 bankruptcy because, unlike Chapter 13 bankruptcy, it doesn't require you to repay a portion of your debt to creditors. In Chapter 13 bankruptcy, you must pay all of your disposable income—the amount remaining after allowed monthly expenses—to your creditors for three to five years.

What is the difference between Chapter 7 and Chapter 13 bankruptcy?

With Chapter 7, those types of debts are wiped out with your filing's court approval, which can take a few months. Under Chapter 13, you need to continue making payments on those balances throughout your court-instructed repayment plan; afterwards, the unsecured debts may be discharged.

What is life after bankruptcy?

Life after bankruptcy, when people need to rebuild their damaged credit, is also explored in the debtor education course. People can learn how to review credit reports and scores and how they can be improved during the class.

How long does it take to file a bankruptcy certificate?

The post-filing financial management program must be taken, and a certificate of completion filed with the court, within 45 days after the Chapter 7 debtor attends the 341 meeting of creditors. In a Chapter 13 bankruptcy, in which creditors are paid over several years, debtors must file the certificate before the last payment is made through ...

What is debtor education?

Debtor education course focuses on post-bankruptcy financial issues. After debtors have completed several steps in a bankruptcy proceeding, they are expected to take a financial management course that will help them avoid accumulating significant debt in the future.

Do you need credit counseling before filing bankruptcy?

Along with a credit counseling class before filing bankruptcy, there is a post-filing course that is required by the U.S. Bankruptcy Court before debts can be discharged. But rather than reviewing alternative ways for a person to resolve their current financial troubles, as the counseling course does, the second program is focused on ...

Will I Have To Pay Income Taxes On Any Debts Discharged in A Bankruptcy?

You won’t have to pay income tax on any discharged debts, which is one of the significant benefits of filing bankruptcy. The discharge of your debt is exempt from income taxes.

How Long After Filing And Completing A Bankruptcy Will I Be Able TO Purchase A Vehicle Or Own A Home Again?

Purchasing a vehicle or owning a home is something about which most of my clients are concerned. Car lenders are anxious to give you a loan for a new car or used car right after bankruptcy. You could potentially buy another vehicle within a couple of months after filing bankruptcy.

Will Having A Bankruptcy On My Record Affect Any Job Opportunities?

It is possible that bankruptcy could affect your job opportunities. Federal law provides that federal employers may not discriminate against individuals that have filed bankruptcy. However, most job nongovernment job applications ask whether you’ve filed bankruptcy.

What Are Some Ways People Can Get Back On Their Feet After Completing A Chapter 7 Bankruptcy?

People get back on their feet by starting to save money after filing bankruptcy. The Debtor Education course you take after filing bankruptcy points out some ways to be spend less and save more.

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.

How to get a case number if my attorney has not filed?

There are 3 main ways to get this information: Call VCIS (Voice Case Information System) at: (866) 222-8029 (automated line) Ask your attorney. Ask the bankruptcy court.

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 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 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.

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 Chapter 7 bankruptcy?

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).

What is a Chapter 13 bankruptcy meeting?

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, ...

Is there a second bankruptcy course?

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.

What is bankruptcy education?

What Is Bankruptcy Debtor Education? In order to be discharged from Chapter 7 or Chapter 13 bankruptcy, you must complete a Pre-Discharge Debtor Education course. The purpose of this bankruptcy course is to help you remain financially secure and use credit wisely so you don’t end up in bankruptcy again.

How long does it take to get a bankruptcy education certificate?

Bankruptcy Education Deadlines. Those who file for Chapter 7 bankruptcy protection 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.

What is the credit counseling requirement for bankruptcy?

It includes the requirement that all Chapter 7 or 13 bankruptcy petitioners complete approved credit counseling and provide to the court a certificate of completion from a U.S. Trustee-approved, nonprofit credit counseling agency. The law also requires all consumers who file for bankruptcy to successfully complete two bankruptcy courses prior to having debts discharged.

What is the form 23 for debtor education?

When you complete the debtor education course, you must file a form called Debtor’s Certification of Completion of Postpetition Instructional Course Concerning Personal Financial Management (Official Form 23) with the court.

How to get credit counseling after bankruptcy?

With Pre-file Credit Counseling, you’ll start online, then receive a personal counseling session by telephone to discuss the details of your current financial situation with a Certified Financial Counselor. Your counselor will help you build an accurate picture of your current finances, then give specific advice on actions you can take to improve it. You’ll also discuss short- and long-term financial goals and determine if there are any alternatives to bankruptcy. The counselor will explain consequences of bankruptcy and actions you can take to get back on sound footing after a bankruptcy.

What happens if you miss Chapter 13 bankruptcy?

Those who file for Chapter 13 bankruptcy 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. To reopen it, you must repay the bankruptcy filing fee.

What are the exceptions to debtor education?

Exceptions include: being on active duty in a military combat zone. a disability that prevents you from taking the course. no court-approved course providers are available in your area. a course isn’t available in a language you understand.