why debtor education course so long

You must also complete a pre-discharge debtor education course before your debts can be discharged. Usually, this course is between 2-4 hours long and provides additional information on how to stay out of debt. One of the purposes of this course is to teach you how to manage your money better and establish better financial habits.

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What happens if I don’t complete the debtor education course?

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 is debtor education and why is it important?

The main purpose of debtor education is to learn about basic concepts related to budgeting, saving, and financial management, to prevent clients who are filing bankruptcy from ever finding themselves in the same situation ever again.

How long does the debtor education program take?

The debtor education provider takes a minimum of 2 hours or 120 minutes to complete. All providers have the same time requirement. BE Adviser, LLC is approved in all U.S. States and Territories and not every provider is, so it is important to check. Where Can You Find An Approved Program?

When do I take the credit counseling and debtor education courses?

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.

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 after you complete the bankruptcy course?

What Happens After I Complete the Course? When to complete the Debtor Education Course after filing Chapter 13 bankruptcy. Everyone seeking Chapter 13 bankruptcy relief has to complete a mandatory credit counseling class before their case can be filed with the bankruptcy court. This has to be done in the 6 months before the case is filed.

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 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 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 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.

How to get a certificate of completion for a course?

After the course is completed, you will get a certificate of completion. The certificate of completion can be faxed, emailed, or mailed to you. Once you receive the certificate, you will need to file it with the court. You can either do this electronically or go to the Clerk’s office to give it to them personally/mail it to the court.

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.

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 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 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).

What is debtor education?

The main purpose of debtor education is to learn about basic concepts related to budgeting, saving, and financial management, to prevent clients who are filing bankruptcy from ever finding themselves in the same situation ever again.

What to expect once debtor education is completed?

Once the debtor education is completed, there’s things that must be done and the courts are quite precise about how they want it done. When the debtor education requirement is satisfied , the agency you use will provide a certificate of completion.

How long does credit counseling take?

The credit counseling session takes roughly 60-90 minutes.

How long does bankruptcy education take?

The debtor education provider takes a minimum of 2 hours or 120 minutes to complete.

Why do bankruptcy courses have to be done separately?

As cumbersome as the whole process may be there is a reason for both bankruptcy courses. In fact, it’s done separately, not only to satisfy the courts but to make sure the petitioner is not confused and understands what’s expected of them going forward.

How long does it take to become a debtor education provider?

The debtor education provider takes a minimum of 2 hours or 120 minutes to complete. All providers have the same time requirement. BE Adviser, LLC is approved in all U.S. States and Territories and not every provider is, so it is important to check.

Is Western District Credit Counseling a non profit?

Western District. If you’re using a credit counseling organization you must make sure it is a non-profit and approved organization. The debtor education course does not have to be provided by a nonprofit but it does have to be approved. If they aren’t on the list above then don’t risk it.

Who pays for the instructional course?

Persons other than the debtor may pay for the instructional course, as long as such payments comply with applicable laws, regulations, and ethical requirements (such as state laws and rules concerning attorney ethics).

Is a fee of less than $50 reasonable?

A fee of less than or equal to $50 is presumed reasonable and does not require justification. Fees in excess of $50 must be approved in advance by the USTP by demonstrating, at a minimum, that the provider’s costs for delivering the instructional course justifies the requested fee.

Can debtor education providers increase their fees?

A: A debtor education provider may not increase its fees without prior USTP approval. To request approval to increase fees, a provider must submit an amended application setting forth the proposed increased fees, as well as the reason for the increase.

Do providers have to inform debtors of fees?

A: A provider must inform debtors that services are available for free or at a reduced rate, based on a debtor's ability to pay, before providing any information to or obtaining any information from a debtor, and before beginning a debtor education session. Fee waiver policies may vary by provider.

Does the USTP endorse or recommend debtor education providers?

A: To assist individuals in finding a debtor education provider, the USTP maintains a list of approved providers on its Web site. The USTP cannot endorse or recommend any particular provider on its list of approved providers, or guarantee the quality of its post-filing debtor education instruction or services.

Can you pay for debtor education?

A: Yes. Persons other than the debtor may pay for debtor education, as long as such payments comply with applicable laws, regulations, and ethical requirements (such as state laws and rules concerning attorney ethics).

Can debtors request additional judicial districts?

A: Yes. A debtor education provider, once approved, may request approval for additional judicial districts by submitting an amended application. The amended application shall list both the additional judicial districts for which approval is being requested, as well as the currently approved districts.

What happens if you don't pass bankruptcy education?

If you’re unable to pass the debtor education course and your case is closed without a bankruptcy discharge, it will cost you. You will need to pay extra to have your bankruptcy case reopened. Creditors may resume collections actions against you and seize your assets before you reopen your case.

What does failure to take a course mean?

However, failure to take the course or to pass it could mean that your bankruptcy case is closed without a discharge. Fortunately, there are a few things you can do to fix the situation if you fail the course.

How long is a credit counseling course?

This 90-minute or so class is “designed to assist debtors in understanding personal financial management“—such as the appropriate use of credit, and budgeting skills. Like the pre-bankruptcy “credit counseling,” it can be done online, over the phone, or in person. You can choose to have it be in English or various other languages. When both spouses file a joint bankruptcy, both spouses must take this course. When you complete the course, you receive a certificate of completion which must be filed at the court.

What is the goal of Chapter 7 bankruptcy?

The most important thing is to get it done, and done on time. The primary goal of a Chapter 7 case is to get a discharge of your debts. Most Chapter 13 cases have that as a major goal as well—to discharge whatever debts are not paid during your case. If you do not complete the debtor education step, your bankruptcy case will close but you will not receive a discharge of your debts. You will have gone through a great deal of trouble without getting to your intended goal.