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Post-Bankruptcy Debtors Financial Management Course: Top 5 Things to Know

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Post-Bankruptcy Debtors Financial Management Course –Every person in Chapter 7 or Chapter 13 bankruptcy is required to take a post bankruptcy debtors financial management course. This course helps teach financial principles for making a budget and making sure that you will be able to manage your finances after bankruptcy. This article is about the top five things to know about the post bankruptcy debtors financial management course.

1.  Post Bankruptcy Debtors Financial Management Course Top Things to Know 

You are required to take this second class after the bankruptcy case is filed but before you receive your discharge in your case. Every person that files Chapter 7 Chapter 13 bankruptcy case must take this second, “post” bankruptcy class after the bankruptcy case is filed. You will be required to provide your bankruptcy case number before taking the second bankruptcy class on financial management in order to prove that your bankruptcy case has already been filed. It is best to take this second bankruptcy class right after your bankruptcy case is filed. The last possible time you will have to take the class is right before your discharge, but do not wait that late to take it!

2.  Post Bankruptcy Debtors Financial Management Course Top Things to Know 

Do not forget to take the second class or take it too late. If you do not take your second bankruptcy class on financial management before you receive the discharge in your bankruptcy case, it will be closed without a discharge. The court will require a large reopening fee to reopen your case. Do not make a $300 mistake. Take your second bankruptcy class early, right after your bankruptcy case is filed.

 3.  Post Bankruptcy Debtors Financial Management Course Top Things to Know 

This class is about managing your finances in the future after the bankruptcy.  Congress felt that it was necessary to require the second bankruptcy class in order to teach financial management to those who have filed for bankruptcy relief. Many debtors get into bankruptcy situations because they do not understand proper and effective financial management. This class was a minimal effort by Congress to at least teach basic financial principles to those who have found it necessary to file for bankruptcy.

4.  Post Bankruptcy Debtors Financial Management Course Top Things to Know 

The class is very affordable. Although there are a variety of providers of the second bankruptcy class, almost all of them now are very affordable. Many providers charge as little as $8 to $15 for the second required class. Some providers may provide additional information in a better to understand format that gives you better financial training. These classes may cost a little bit more than the lower end of the spectrum but usually do not exceed $50.

5.  Post Bankruptcy Debtors Financial Management Course Top Things to Know 

Keep getting financial education even after you take the second course. The value of financial knowledge cannot be overstated. Acquiring financial knowledge and living by it can completely change your life forever. If you make it your mission to acquire and live by financial understanding, then your life will truly get the fresh start that you need.

Conclusion

The post bankruptcy financial management class can be a powerful beginning to new financial understanding. After you file bankruptcy, you truly have a fresh start. However, it’s up to you what you would do with that fresh start. Use the post bankruptcy financial management class to kick off a new life of financial responsibility and learning. This is what Congress intended by requiring people to take this course: a life that is much better now because of new financial understanding.

~Indianapolis Bankruptcy Attorney John F. Bymaster

 

Pre-Bankruptcy Credit Counseling – The Top Five Things to Know

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Pre-Bankruptcy Credit Counseling – Every debtor is now required to take a bankruptcy credit counseling course before they file a Chapter 7 or Chapter 13 bankruptcy case. This pre-bankruptcy credit counseling course can be taken through several different course providers. This article is about the top five things to know about this course.

Number One: The pre-bankruptcy credit counseling course is usually very affordable. The pre-bankruptcy credit counseling course is usually only a cost of $10 to $20 at this time for an affordable and reliable course provider. When the original requirement for the pre-bankruptcy course was put into effect in October 2005, courses usually ranged anywhere from $50-$75. Over time as the course became more clear and more providers got involved, the cost gradually declined until now when the approximate cost is usually $10-$20 per bankruptcy per course provider. If you are paying more than $10-$20 for this pre-bankruptcy course now, you may be paying too much and could possibly find more affordable options.

In certain situations, the pre-bankruptcy credit counseling course can even be obtained for free or reduced charge. This is because the bankruptcy code requires all providers to provide the course either free or at a reduced charge to people who do not have the means financially to take the course.

Number Two: The pre-bankruptcy credit counseling course usually only takes one hour to complete. Unlike other more intensive courses provided for various legal settings, the pre-bankruptcy credit counseling course only takes one hour to complete. You may spend more than one hour working on the course if you choose, but you are required by the federal law to spend at least one hour in completing the course.

Number Three: The pre-bankruptcy credit counseling course goes over alternative options to bankruptcy such as repaying your debts. The content of the pre-bankruptcy credit counseling course is a repayment plan or other method that may be available to repay your debts. This repayment plan (or other viable information that can help you avoid bankruptcy) is not very useful to many people who already thoughtfully have considered whether they should file for bankruptcy. However, in some situations it may be an advantage to the debtor to know that it is their best option to file bankruptcy.

Number Four: The pre-bankruptcy credit counseling course can be taken easily either through the Internet or on the phone.  Because of opposition in Congress, the requirements for taking the pre-bankruptcy credit counseling course are not very difficult. Congress decided that it is necessary to allow people to take the class quickly either through the Internet or through the phone to make it less of a burden for those seeking to file bankruptcy. Therefore, if necessary, it can be very easy to obtain the pre-bankruptcy credit counseling course certificate either by contacting an institution that will do it right away over the phone or by doing it immediately through the Internet.

Number Five: The pre-bankruptcy credit counseling course must be taken before the bankruptcy case is filed. There are absolutely no exceptions except for some very limited situations. It is extremely important to note that all debtors must take the pre-bankruptcy credit counseling course before they file for bankruptcy. Any person who is an individual (such as a person, not a business) must take the course before the bankruptcy case is filed or their case will be shortly dismissed thereafter.

There are only very limited exceptions to those who are not required to take the pre-bankruptcy credit counseling course. The first exception is for incapacity: a person who does not have the mental capacity to take or understand the course. You will be required to provide detailed medical information and file a motion to have the credit counseling requirement waived for incapacity.

A second less common exception is for those in active military service who do not have the ability to take the course. It is advisable that even people on active military duty should still take the course but may be able to avoid if taking the course is absolutely impossible.

Take the pre-bankruptcy credit counseling course. It will not be a burden to you. If you are seriously considering filing bankruptcy, do not let the pre-bankruptcy credit counseling course deter you from filing bankruptcy. The pre-bankruptcy credit counseling course is very easy to complete and very affordable: if you need help taking the course you can contact our office and we will send you to a provider who is reliable and affordable so that you can prepare to file Chapter 7 or Chapter 13 bankruptcy.

-Indianapolis Bankruptcy Attorney John F. Bymaster