The personal bankruptcy procedure is designed to help those who are struggling, financially speaking. It is unfair to say that poor financial planning is the reason people are forced to file a bankruptcy claim, as unemployment, illness, and a variety of unavoidable circumstances could cause people to be overwhelmed by insurmountable debt. Although most states have a requirement that you take a credit counseling course prior to claiming bankruptcy to make sure there are no other options available to you that you were not aware of, it is now also necessary for you to take a bankruptcy course after filing.
The Debtor Education Course must be completed after either you or your attorney has legally filed your petition for personal bankruptcy, but before your case is finalized and you receive your discharge. This means that you have a maximum of 45 days from the date of filing in which to complete your financial education course and submit your certificate of completion to the court. If you fail to do so your bankruptcy case can be dismissed without discharge of your eligible debts.
The course is intended to help you make the best use of the fresh financial start, and hopefully provide you with the necessary financial tools to ensure that you will not have to make use of bankruptcy again in the future. At the end of the course you should be able to understand the importance of making financial goals, be able to create a budget, and have the ability to balance a checkbook and reconcile bank statements.
A general financial education course will include topics such as:
• Computing your net worth
• Setting and reaching your financial goals
• Preparing a budget
• Ways to cut expenses
• Money management
• Saving money
• Insurance
• The wise use of credit
• Consumer protection
• Predatory lending
• Identity theft
Since the Debtor Education Course is a mandatory part of the personal bankruptcy process, it is priced very affordably, ranging anywhere from $15-$75 dollars depending on the length of course, topics included, and institution providing the training. All the courses generally provide the same information and come with a test at the end which you must pass prior to receiving your certificate; therefore, you have the option to choosing whichever school is most convenient for you. Depending on where you live, you may be able to complete the course on the Internet or by phone rather than going in person. Some agencies also provide individual as well as group classes, so there is plenty of flexibility to suit your needs. Since the course only takes 1-4 hours, it can easily be completed in an afternoon and the paperwork submitted to the court well in advance of the deadline.
One important thing to keep in mind when looking for a post-bankruptcy financial education course is to make sure that it is approved by court in the judicial district where you have filed for bankruptcy. If you take a course through an agency that is not on the approved list, you will be required to retake it through an approved agency. This will also require you to pay another fee and while the fees are rather affordable, they can be costly for those undergoing bankruptcy. If you are truly unable to pay the fee for your mandatory post-bankruptcy financial education, you will have to approach the court for a fee waiver, but these are only granted in cases of extreme financial distress.
Taking a bankruptcy course after filing is now a standard step in the personal bankruptcy procedure and is designed to ensure that individuals are given the best possible opportunity to wipe their financial slate clean and make the most of their financial future. Hopefully this will help to reduce the numbers of people who are forced into repeat bankruptcy filings. If you need to take a bankruptcy course after filing, make sure to shop around to find one that is both affordable as well as government approved.