Life has its own ways of throwing curve balls at us and when it does, it firstly affects our finances. While most of the people generally have best intentions for paying the bills and taking care of the responsibilities, but still sometimes circumstances may arise when they have to file for the bankruptcy. Bankruptcy law requires prior counseling to and after to help the person to make the most informed decision. Once the course is complete, you will receive a bankruptcy course certificate. These certification documents are required before filing for the chapter 13 or chapter 7 and after the filing too but before the discharge of the debts. Bankruptcy course and debtor education course are both necessary.
Earning a bankruptcy certificate through credit counseling
The first thing an applicant is needed to do is to the bankruptcy certificate to complete his credit counseling course. The organization which you choose for the bankruptcy course must be approved by an authorized authority. You can find the course to take by phone or online and they generally take up to 90 minutes to complete. There is a minimal amount fee that an organization takes for the course but if the person is unable to pay then he can apply for a waiver. During the credit counseling, the applicant is provided with the information concerning his finances including expenses, income, and debts. Since the applicant will need all the required information for filing bankruptcy, the documentation for the course will be helpful. Proof of income with pay stubs and various other sources of income like social security or disability payments are also required. Other things which are required include household expenses like utility bills and receipts including debts of the latest statements. With all this information the counseling will walk through the evaluation of the financial situation, setting up a personal budget, reviewing the spending habits and exploring bankruptcy alternatives. The certificate will be sent to the applicant and bankruptcy attorney on the completion and will remain valid for 180 days. The applicant is required to file the certificate with the bankruptcy petition. Debtor education course and bankruptcy course are very essential.
Taking a post-bankruptcy debtor education course
The person going for bankruptcy is also required to go for the debtor education course after filing for bankruptcy. This is mandatory and on its completion, the second bankruptcy certificate will be given. In chapter 7, this certificate is filed before the forty-fifth day following the creditors meeting. In chapter 13, this filing should not occur later than the repayment date. Like the credit counseling, the applicant can take the course by phone or online. Both bankruptcy course and debtor education course can be taken online. Bankruptcy pre-discharge course and second bankruptcy course are also required in some necessary conditions. All these debtor education courses, bankruptcy course, bankruptcy pre-discharge course and second bankruptcy course must be taken from an approved organization. Bankruptcy course and debtor education course will help to maintain good financial future.