When you file bankruptcy, every filer must complete a credit counseling course before submitting your paperwork with the court, and a debtor education course before your bankruptcy will be discharged.
Credit Counselling: The “First” Course
During the first required course, you will be counseled on your finances and explore alternative repayment options. You will go over some of the other debt repayment plans available to you as well as filing for bankruptcy. You can choose an online course or over the phone. It is less time consuming than attending the class in person.
When you complete the course, you will have to file the course certificate to corroborate the education requirement. You will file your petition and schedules (the official paperwork that initiates the case) simultaneously.
Debtor Education: The “Second” Course
After the filing of bankruptcy, you will be required to take a post-filing debtor education course (or “second” class). The second course will equip you with financial management tools or skills that can be relied on after completing a bankruptcy.
With regard to Chapter 7 bankruptcy, you must file your completion certificate with the court no later than 60 days or two months after the date first set for the 341 meeting of creditors (all bankruptcy filers must attend the hearings).
The court will send you a reminder titled “Notice of Requirement to File a Certification of Completion of Course in Personal Financial Management.” Under the repayment plan, Chapter 13 filers could furnish the completion certificate any time before making the final payment.
Failure to complete these courses could result in your case being dismissed, and you would gain no financial relief. For more information on the requirements for bankruptcy, contact a Dallas bankruptcy attorney.