what questions will they ask in pre bankruptcy course

First you'll answer questions about your debt, income, and assets. Then you'll be asked about your spending habits. The idea is to target what's causing your money troubles and give you information and advice on how to avoid these issues in the future.

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How do I take the bankruptcy pre-discharge debtor education course?

The Pre-Discharge Debtor Education course can be completed online. There is no required phone call with a counselor. This course can be taken from the convenience of your home computer 24 hours a day, seven days a week. Start Bankruptcy Pre-Discharge Course

What is included in pre-discharge bankruptcy education classes?

The material presented in pre-discharge bankruptcy education classes is focused on teaching the consumer how to create a budget (and live with it!), plus rebuilding credit after bankruptcy so that it becomes a useful part of your financial future.

What is the purpose of a bankruptcy 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. This act was signed into law on April 20, 2005, and includes checks and balances to ensure that consumers are equipped to make informed decisions when it comes to filing bankruptcy.

What credit counseling should I take before filing bankruptcy?

The one you took before filing – called the pre-file bankruptcy credit counseling – is designed to explore options other than bankruptcy for solving your problem. The pre-discharge debtor education course is designed to teach you how to stabilize your financial situation after bankruptcy.

What are my options before bankruptcy?

Your options to avoid bankruptcy include debt management plans; debt consolidation loans and debt settlement.

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.

Should a Debatir seek counsel before bankruptcy?

Because a chapter 7 discharge is subject to many exceptions, debtors should consult competent legal counsel before filing to discuss the scope of the discharge. Generally, excluding cases that are dismissed or converted, individual debtors receive a discharge in more than 99 percent of chapter 7 cases.

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.

What is the downside of filing for bankruptcy?

Filing for bankruptcy can negatively impact your immediate financial future. Obtaining credit after filing for bankruptcy could mean increased interest rates. Obtaining credit after filing for bankruptcy might require security deposits.

What questions can a creditor ask in a 341 meeting?

You Must Tell The Truth At The 341 Meeting Of Creditors. The Trustee and any creditor or other party in interest is entitled to ask questions regarding your assets and liabilities, as well as any questions that are relevant to the administration of the bankruptcy case, or your right to a discharge.

Should I close my bank account before filing bankruptcy?

You'll want to open checking and savings accounts at a bank that doesn't service any of your debt and use the new account for banking purposes before filing bankruptcy. Again, you don't need to close other accounts—leave them open and report all accounts when filling out your bankruptcy paperwork.

What debts are not discharged in bankruptcy?

The following debts are not discharged if a creditor objects during the case. Creditors must prove the debt fits one of these categories: Debts from fraud. Certain debts for luxury goods or services bought 90 days before filing.

When a business debtors files for Chapter 11 protection the debtor is allowed to continue in business?

A case filed under chapter 11 of the United States Bankruptcy Code is frequently referred to as a "reorganization" bankruptcy. Usually, the debtor remains “in possession,” has the powers and duties of a trustee, may continue to operate its business, and may, with court approval, borrow new money.

Are all debts dischargeable in bankruptcy?

Not all debts are discharged. The debts discharged vary under each chapter of the Bankruptcy Code. Section 523(a) of the Code specifically excepts various categories of debts from the discharge granted to individual debtors. Therefore, the debtor must still repay those debts after bankruptcy.

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 a consumer proposal?

A consumer proposal is a formal, legally binding process that is administered by a Licensed Insolvency Trustee (LIT). In this process, the LIT will work with you to develop a "proposal"—an offer to pay creditors a percentage of what is owed to them, or extend the time you have to pay off the debts, or both.

What does it mean when a court orders that a consumer is no longer legally required to pay his debts?

That is when the court orders that the consumer is no longer legally required to pay his debts. The court must grant the discharge and it is permanent, meaning creditors can’t take any action against the debtor to collect.

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

Pre-file bankruptcy credit counseling must take place 180 days before you file for bankruptcy. Pre-discharge debtor education must be completed within 60 days after your first meeting with creditors for Chapter 7 bankruptcy. For Chapter 13 bankruptcy, you must complete the course before making your final payment.

How does bankruptcy prevent creditors from collecting debt?

It prevents creditors or collection agencies from collecting debts through legal action or communication, such as phone calls, letters or personal contact. Though the goal is clear, the path to a discharge is often complex and it behooves petitioners to understand the bankruptcy process and its potential pitfalls.

How many hours of credit counseling do you need to have a bankruptcy discharge?

Teachers give a minimum of two hours of instruction on how to manage money, repair credit and plan successful financial strategies after bankruptcy.

What is pre-discharge credit counseling?

When you complete the first course – pre-filing bankruptcy credit counseling – you receive a certificate that you, or your attorney, must include when filing for bankruptcy. The same situation exists after completing the second course – pre-discharge debtor education, which is sometimes referred to as Financial Management.

What happens when you discharge debt in bankruptcy?

Though bankruptcy discharges clear away debt, their terms are strict and require that petitioners follow court orders.

What is the goal of bankruptcy?

Bankruptcy petitioners all have one goal: getting out of debt as quickly as possible. That objective is reached through discharge, a court order that releases a debtor from obligations to repay specific unsecured debts. It prevents creditors or collection agencies from collecting debts through legal action or communication, such as phone calls, ...

How much does pre bankruptcy counseling cost?

Fees for pre-bankruptcy credit counseling depends on which agency you choose but generally, cost between $15 and $50 dollars. The credit counseling provider I refer my clients to charges $14.95.

How long does it take to get credit counseling?

The credit counseling course isn’t difficult, takes 60 to 90 minutes, and can be done in person, on the phone, or online. During the class you will provide information about your finances in an effort to determine whether bankruptcy is really the best option for you.

What is the best way to file for bankruptcy?

About 62% of bankruptcy cases filed are Chapter 7, and 38% of cases filed are Chapter 13, according to a 2019 report required by the Bankruptcy Abuse Prevention and Consumer Protection Act . [ 3] Personal bankruptcy helps with consumer debt such as credit card debt, medical bills, and old utility bills. Sometimes personal bankruptcy is used for business debt acquired as a sole proprietor. A Chapter 7 can also help with certain garnishments against your paycheck and bank account, a car loan deficiency after a repossession, and collection efforts that disrupt your life.

How long do you have to wait to file a Chapter 13 bankruptcy?

If you received a discharge in a previous Chapter 13 filing, you only have to wait two years to refile a bankruptcy petition for the same chapter. You’ll have to wait six years from your most recent Chapter 13 bankruptcy filing if you intend to file a Chapter 7 case.

What is Upsolve for bankruptcy?

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How much debt do you need to file for Chapter 13?

To file a Chapter 13 plan, your unsecured debts must be less than $419,275, and you must have less than $1,257,850 in secured debt. [ 4] . A lawyer can give you legal advice on the best type of bankruptcy for your unique financial situation.

What is the Means Test for Chapter 7?

The Means Test is a formula that evaluates your income and expenses and compares it to government data to see if your disposable income is low enough to qualify for a Chapter 7 bankruptcy.

Why does collection stop in bankruptcy?

When you file a petition for this bankruptcy chapter, collection action will come to a stop because of the automatic stay, just like in a Chapter 7 proceeding. Although both bankruptcy chapters give you an automatic stay, a bankruptcy proceeding under 13 is more complex than Chapter 7, and creditors can object to payment plans.

What is Chapter 13 bankruptcy?

A Chapter 13 bankruptcy is focused on payments and reorganization. If you can prove you have a steady income and you want to keep your car and house, 13 may be your lucky number. Under this chapter, you’ll be making monthly payments to a bankruptcy trustee to pay off your debt. If you don’t have the money or assets to pay off all of your debt, the unpaid portion will be discharged once the payment plan has been completed. If you have non-exempt assets of value—for instance, a vacation home—they will be sold off if you can’t make an acceptable repayment plan.

What happens if you don't complete debtor education?

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.

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.

What is the bankruptcy law?

This act was signed into law on April 20, 2005, and includes checks and balances to ensure that consumers are equipped to make informed decisions when it comes to filing 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 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 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.

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.

How long does it take to file a bankruptcy certificate after a Chapter 7 bankruptcy?

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 the trustee assigned to their case.

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.

What is AFT in banking?

The benefits of taking the post-filing course range widely, states the Academy of Financial Literacy (AFT), one of the agencies approved by the U.S. Department of Justice Trustee Program to provide the courses.

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 ...

Do credit reports show zero balance?

For instance, people need to be aware that once their debts are discharged by the court, each account listed on their credit report should show a zero balance and be noted as having been included in the bankruptcy .