when to take the required pre-filing course for chapter 13

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.

Full Answer

When should I file my Chapter 7 or Chapter 13 completion certificate?

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.

What are the requirements for Chapter 13 bankruptcy?

You'll take the credit counseling course before bankruptcy. You'll take the debtor education course after filing your case. You'll find approved course providers on the US Trustee Program website. You'll file your completion certificates with the bankruptcy court. And congratulations—filing the debtor education completion certificate is often the last step you'll …

When do I need to file Form 423 in Chapter 13?

Someone filing for bankruptcy must complete an education course—called credit counseling—up to 180 days before filing for bankruptcy. A certificate of completion gets filed with the court along with the official bankruptcy paperwork that starts the process.

When should I file my repayment plan for Chapter 13 bankruptcy?

Nov 09, 2021 · 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.

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...

What's The Pre-Bankruptcy Credit Counseling Requirement?

When you file for bankruptcy, you must fulfill several requirements. For instance, you must: 1. disclose all aspects of your financial situation by...

Why You Must Take Pre-Bankruptcy Credit Counseling

Credit counseling gives you an idea of whether you really need to file for bankruptcy or whether an informal repayment plan would get you back on y...

How to Find Credit Counseling Agencies and The Expected Costs

Your bankruptcy jurisdiction must approve the particular course that you take. You can find an approved provider by visiting the U.S. Trustee’s web...

The Second Course: Post-Bankruptcy Debtor Education

Bankruptcy filers must take a second course—called debtor education—after filing for bankruptcy. The debtor education course provides the filer wit...

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 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 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.

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 ...

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 the test?

If you don't complete the test in a satisfactory manner or receive a score of less than 70%, the provider must communicate with you directly. For telephonic courses, the instructor must contact you either in person or by phone. For online courses, the communication can be by email, live chat, or phone.

How many courses do you need to file for bankruptcy?

A person who files for bankruptcy must take two educational courses before receiving a bankruptcy discharge wiping out qualifying debt. Before you can file for Chapter 7 or Chapter 13 bankruptcy, you must consult with a nonprofit credit-counseling agency to see whether you can feasibly handle your debt load outside of bankruptcy, ...

What is the second course in bankruptcy?

The Second Course: Post-Bankruptcy Debtor Education. Bankruptcy filers must take a second course—called debtor education —after filing for bankruptcy. The debtor education course provides the filer with financial management tools, such as tips for creating a budget and rebuilding credit after bankruptcy.

What is debtor education?

The debtor education course provides the filer with financial management tools, such as tips for creating a budget and rebuilding credit after bankruptcy.

How long does it take to get a credit counseling certificate?

You'll prove that you've taken the credit counseling course by filing the certificate of completion along with your bankruptcy paperwork (no later than 15 days after your bankruptcy filing date). You'll also receive a copy of any repayment plan you may have worked out with the agency.

What is a counseling agency?

The counseling agency usually prepares a budget based on your income and expenses, and then review your options for repaying the debt. In most cases, the agency confirms that you don't have any feasible options for dealing with the debt other than filing for bankruptcy.

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.

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 is debtor education?

Debtor education focusing on budgeting and managing money after bankruptcy. The idea is to set financial goals and learn how to cut your expenses. The debtor education course is taken after you file for bankruptcy but before your case is discharged.

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 long does it take to get a bankruptcy certificate?

If you filed a Chapter 7 bankruptcy, you’ll have 45 days to file the completion certificate after you finish the course.

How long does bankruptcy stay on credit report?

The higher your score was before filing, the more it will drop. Also, be aware that Chapter 7 bankruptcy information will stay on your credit report for 10 years.

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.

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 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.

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).

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.

How much do you have to pay for Chapter 13?

At the time you file for Chapter 13 bankruptcy, you must pay a $235 filing fee, and a $75 miscellaneous administrative fee to the clerk of court. If you cannot make all of these payments at once, the bankruptcy court will accept an installment plan.

How long does it take for a bankruptcy judge to confirm a plan?

Within 45 days of the 341 Meeting of Creditors, the bankruptcy judge will hold a confirmation hearing, where he or she will determine if your plan is feasible and meets the standards for a repayment plan under the bankruptcy code.

What happens if you file bankruptcy without a trustee?

During your repayment period, you may not incur new debts, such as taking out a new mortgage or opening a new credit card, without approval from your trustee.

How long do you have to file a bankruptcy if you don't file a repayment plan?

If you do not file your repayment plan at the time you submit your bankruptcy petition, you must file it no later than 14 days after you filed the initial Chapter 13 paperwork.

How long do you have to make a payment on a secured loan?

You must make sure that any payments on secured loans, such as your home or vehicle, are made on time, even if they are not due before the 30 day window closes. These payments will be subtracted from the first payment under your repayment plan.

How long does it take for a trustee to hold a meeting of creditors?

Between 21 and 60 days after your Chapter 13 case is filed, your trustee will hold a meeting of creditors. During the court hearing, the trustee will verify your information and ask you questions about your financial situation and your proposed Chapter 13 plan.

How long does it take for creditors to file proof of claim?

Within 90 days of the meeting of creditors, any unsecured creditors must file a Proof of Claim with the court if they wish to participate in distributions from the bankruptcy estate. These documents will include information on the amount owed and the basis for the claim.

Jill T Bryan

Your pre-filing credit counseling certificate expires after 6 months. You must always file an unexpired certificate with your new petition. Your previous cases are not relevant in that issue.

Brian Lee Baker

Yes. Pursuant to 11 U.S.C § 109 (h) an individual may not be a debtor unless within the 180 days before the filing of the petition, you received the certificate from an approved nonprofit budget and credit counseling agency.

Kurt E Reinheimer

The counseling certification is only good or valid for 180 days from the date of your initial completion of it. If you are within this time frame you may use the previously completed certification, If, however, you are outside of this time frame the certification has expired and the course must be taken over again.

How long does it take to get a credit counseling certificate?

Some vendors offer live classes. Pre-bankruptcy counseling will take between 45 minutes and two hours and your certificate will be good for 180 days. Most credit counseling vendors charge between $35 and $50.

What is the purpose of credit counseling?

The purpose of credit counseling is to help potential bankruptcy filers learn about alternatives to bankruptcy. In reality, however, credit counseling has not changed filing rates very much – only a tiny percentage of individuals who complete the mandatory credit counseling manage to avoid filing bankruptcy. Nevertheless, you must have ...

How much does credit counseling cost?

Most credit counseling vendors charge between $35 and $50. Most charge only one fee for joint counseling for a husband and wife. The financial management course will also cost you between $10 and $50.

Notice to All Individuals After You File!

Did you complete a financial management course and file your certification of completion with the Court?

Important facts about the financial management certification requirement

This course is in addition to the credit‐counseling debtors must receive prior to filing a bankruptcy petition.

When to Complete It?

Please note that the Notice of Requirement to File Statement of Completion of Financial Management Course ("Course") is mailed to you with the Notice of Meeting of Creditors. This is the only notice you will receive from the Court advising you of the date the Financial Management Course ("Certification") is due.