when is the second credit course of a chap 7 suppose to be done by?

In both Chapter 7 and Chapter 13 bankruptcy, you (and your spouse if you file jointly) must take two courses before you receive a bankruptcy discharge (the order that wipes out qualifying debt)—one before you file your paperwork, and another afterward.

Full Answer

Should I take a debtor education course before or after bankruptcy?

You must take a debtor education course after you file bankruptcy but before you get a discharge in your Chapter 7 or Chapter 13 bankruptcy. Please answer a few questions to help us match you with attorneys in your area.

What is a Chapter 7 bankruptcy plan of repayment?

A chapter 7 bankruptcy case does not involve the filing of a plan of repayment as in chapter 13. Instead, the bankruptcy trustee gathers and sells the debtor's nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code.

Do I need a bankruptcy case number to take credit counseling classes?

The provider will ask for your bankruptcy case number. If you don't need it when you sign up, you're probably taking the first course—the credit counseling course. You filed the first credit counseling certificate with your bankruptcy paperwork. You must file the second debtor education certificate with the court, too.

How do I file a second debtor education certificate in bankruptcy?

You must file the second debtor education certificate with the court, too. If your provider isn't going to file it for you, download the coversheet form (link below), complete it, and file it with the certificate. Bankruptcy is essentially a qualification process.

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 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.

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 ...

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 classes do you need to take before filing for bankruptcy?

In both Chapter 7 and Chapter 13 bankruptcy, you (and your spouse if you file jointly) must take two courses before you receive a bankruptcy discharge (the order that wipes out qualifying debt)—one before you file your paperwork, and another afterward. Read on to learn about the second class, a personal financial management course known by several ...

How many courses do you need to file for bankruptcy?

In both Chapter 7 and Chapter 13 bankruptcy, you (and your spouse if you file jointly) must take two courses before you receive a bankruptcy discharge (the order that wipes out qualifying debt)—one before you file your paperwork, and another afterward.

What is debtor education?

It's a financial management course that you take after you've filed for bankruptcy but before you get a discharge. The debtor education course teach es you strategies that will help you stay financially healthy after your bankruptcy.

How long do you have to file a 423 in bankruptcy?

When You Must Get the Counseling. In Chapter 7 bankruptcy, you must file Form 423 and the certificate no later than 45 days after the date on which your meeting of creditors was first scheduled. Don't miss the deadline. If you do, the court might close your case.

How to find credit counseling agencies?

You can find approved agencies in your area by visiting the U.S. Trustee's website. Select " Credit Counseling & Debtor Education" in the left navbar.

Can you pay credit counseling on a sliding scale?

However, you must be allowed to pay on a sliding scale if you can't afford to pay the full price. You can take the course in a variety of ways, depending on the provider. You can find approved agencies in your area by visiting the U.S. Trustee's website. Select "Credit Counseling & Debtor Education" in the left navbar.

What is the second credit counseling course?

The second credit counseling course is designed to give you useful financial information and help you better manage your finances.

How much does it cost to take credit counseling for bankruptcy?

The cost of the credit counseling courses is $50 or $25 for each session. To complete the second credit counseling course:

What is credit counseling?

The purpose of credit counseling is to help you evaluate your financial options and determine if you can repay debts through a repayment plan without filing bankruptcy. In credit counseling, you will usually provide information regarding your income, expenses, and debts. The counselor then evaluates the information and proposes a repayment plan.

How much does credit counseling cost?

Credit counseling agencies and debtor education providers must charge a reasonable fee of $50 or less. An individual’s income that falls 150% below the poverty line is eligible for a fee waiver.

What do you need to do before filing for bankruptcy?

Before you file for a Chapter 13 or Chapter 7 bankruptcy, you must receive credit counseling from an approved agency. Before bankruptcy is discharged, you must attain a personal finance management course known as debtor education.

What is debtor education?

Debtor education information is meant to instruct you to be responsible with your finances. The education is meant to help you learn from past mistakes and never be in the position to file bankruptcy again.

When did Chapter 13 bankruptcy take effect?

These requirements came about due to changes in bankruptcy laws that took effect in October of 2005.

Do you have to take a test before taking a course?

If you take the course over the phone or online, you will have to take a test before completing the course. An instructor must contact you if you can't score 70% or higher on the test.

Is credit counseling a generic course?

Also, the counseling must not be generic but individually specific to the debtor.