Overview of Debtor Education Course

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Bankruptcy is the quickest way to deal with your overwhelming debt problems. It is a legal procedure designed for helping individuals and business organizations obtain protection from debts. It is the right decision if you do not have any other option to come out from the debt or are unable to pay back your creditors. If you are planning to file bankruptcy, you must be aware of the importance of proceedings to protect your individual rights. Bankruptcy education helps you to understand all the options available for you. 

You must undergo credit counseling and debtor education courses within 180 days before filing your bankruptcy case. An approved counseling agency will conduct counseling sessions for up to two hours. The counseling process should be completed as soon as you decide to file bankruptcy. It is highly important if you want to prevent repossession or foreclosure of your personal property. 

Debtor Education Course

If you want to file for bankruptcy protection, enrolling and completing a debtor education course is inevitable. You must receive the course prior to the discharge of your debts in bankruptcy. As a debtor, you must file the evidence of successful completion of bancruptcy course. It should be in the form of a certificate for satisfying the bankruptcy requirement. The course should be conducted by the US approved vendors, providers or agencies. Bankruptcy administrator or Trustee Program is permitted to issue this certificate to the debtors. In order to protect the official certificate from fraud, it is coming with unique numeric identifiers. Only the approved parties and entities have the right to advertise their bankruptcy courses. 

Curriculum 

The curriculum of a typical debtor education course covers topics such as:

* Management of money

* Budget development and planning 

* Credit choices 

* Wise money

* Saving

* Credit Card Debt

* Personal credit

The discussions of similar resources and tools are also included in the curriculum. You can complete the course over the phone, in person or even online. You can enjoy the same flexibility with pre-filing credit counseling. The course can be arranged as per the convenience of the debtor. The fee for the course normally ranges from $50-$100. If you are unable to pay the course fee, you can apply for getting a course fee waiver. The duration of the course is around two hours. Your counselor will conduct an in-depth evaluation on your liabilities, assets, expenditures and income. After evaluating your financial situation, your counselor will provide you the right solution. You and your counselor can work together for developing a reasonable budget, which can be managed easily. Your counselor will also help you for developing an action plan. At the end of bankruptcy counseling, your debt counselor may allow you to speak with your bankruptcy attorney. 

If you fail to complete the debtor education course before finishing your bankruptcy case, the judge will not sign the order discharging your debts. If you complete the education requirement afterwards, the judge may likely to reopen your case. However, you need to pay hundreds of dollars more for re-opening filing fees. Besides, you must also pay attorney fees as well. Your creditors can also collect their debts from the time your case is closed.

written by: Jessy Shibu