when is the second debtor education course required in chapter 13

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

When to complete the debtor education course after filing Chapter 13 bankruptcy?

It's 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.

Do I have to take a course in debtor education?

May 22, 2020 · 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. The first course is called the pre-filing credit counseling course which must be taken through a provider that is approved to offer the course in the district you file.

What is 2nd bankruptcy course?

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 names, including the …

What is the bapca debtor education course?

Apr 05, 2021 · Bankruptcy laws require potential bankruptcy filers to be involved in courses that educate and inform about financial options. 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 The Debtor Education Course Requirement?

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...

Who Must Take The Debtor Education Course?

With a few exceptions, all Chapter 7 and Chapter 13 bankruptcy debtors must complete a course in debtor education before they can receive a dischar...

Approved Debtor Education Course Providers

You must take the debtor education course from a provider approved by the U.S. Trustee (or the Bankruptcy Administrator if you live in Alabama and...

When Do You Have to Complete The Debtor Education Course?

If you file for Chapter 7 bankruptcy, you must take the debtor education course and file your certificate of completion (discussed below) with the...

How Much Does The Debtor Education Course Cost?

The cost of the debtor education course will depend on the provider you select. But the new rules published by the Executive Office for U.S. Truste...

What Happens During The Debtor Education Course?

You can usually take the debtor education course in person, over the phone, or on the Internet. Regardless of the method of instruction, the course...

Filing Your Certificate of Completion

When you complete the debtor education course, you must file a form called Debtor’s Certification of Completion of Postpetition Instructional Cours...

How much does debtor education cost?

The Debtor Education Course usually costs between $15 - $50 depending on the provider you choose to complete it with. The Executive Office for the U.S. Trustees (EOUST) has set a figure limiting the fee to the course to be under $50.

What happens if you fail Chapter 13?

Failing to complete the course will prevent you from getting your discharge. This means your bankruptcy case will close and you will still be liable for whatever debts did not get paid through your Chapter 13 plan. If this happens, you will need to pay money to reopen the case and provide the court with a certificate of completion showing ...

What is the second course called?

The second course is called the debtor education course or the financial management course. The post-filing debtor education course was added by BAPCA to educate individuals about their finances and give them all the tools they need so they don’t end up having to file bankruptcy again.

How long does it take to complete bankruptcy counseling?

The bankruptcy credit counseling course must be completed 180 days before you file your bankruptcy petition . The second course is called the debtor education course or the financial management course.

What is the first course to take before filing for bankruptcy?

The first course is called the pre-filing credit counseling course which must be taken through a provider that is approved to offer the course in the district you file.

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

This has to be done in the 6 months before the case is filed.

How long does a Chapter 13 bankruptcy last?

A Chapter 13 bankruptcy can last anywhere between 3-5 years and although you don’t need to complete it until sometime before your last plan payment, it's best to do it sooner rather than later so you don’t forget.

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 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 ...

What form do you need to file for bankruptcy?

If that happens, you'll have to reopen your case and repay the entire filing fee. In Chapter 13 bankruptcy, you must file Form 423 and the certificate no later than the date on which you make your last plan payment.

When do you file a 423?

In Chapter 13 bankruptcy, you must file Form 423 and the certificate no later than the date on which you make your last plan payment. You can take the course early on in your case, however, and some attorneys recommend this because the course provides information that may help you budget and complete your plan.

How long does it take to file a 423?

Filing Deadlines. 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.

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.

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.

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 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.

What is the impact of bankruptcy?

The bankruptcy process involves making several critical decisions that will impact the amount of debt you retain, the property you can keep, and the impact on your ability to access credit later.

What is the U.S. Trustee Program?

Trustee Program (a branch of the U.S. Department of Justice that is responsible for overseeing bankruptcy cases).

Second Bankruptcy Course

This self-paced, online personal financial management course satisfies your debtor education requirements after you file for a Chapter 7 or Chapter 13 personal bankruptcy in the U.S.

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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.