If you’re drowning in debt, declaring bankruptcy may be your only option. Unfortunately, some people are hesitant to file for bankruptcy because the process may feel overwhelming, especially when they realize they will need to attend not one class, but two!
The truth is that bankruptcy lessons are both simple and beneficial. There’s no need to be concerned about failing the class! The classes are not graded and the court never sees your answers. You simply complete the counseling and a certificate is issued. Your attorney files these certificates with the court to evidence you have completed the class. Best of all, the courses can be taken online or over the phone so you can complete this requirement from the comfort of your home.
Bankruptcy classes have been required since 2005 when the Bankruptcy Abuse Prevention and Consumer Protection Act went into effect. This federal law requires two types of classes. Read on to find out what they are, and for more information, contact Winterbotham Parham Teeple, a PC at 800.400.9000
The pre-filing, credit counseling is the first course you take before filing for bankruptcy. It is required before you can file for either Chapter 7 or Chapter 13 bankruptcy. Filing your bankruptcy without taking this course may result in the automatic dismissal of your case. Once the credit counseling course is completed, a certificate will be issued evidencing when it was taken. Keep in mind, the pre-filing course is only good for 180 days, so make sure your bankruptcy is filed within 180 days of taking the class. Filing a bankruptcy with an expired certificate will also result in the case being dismissed. A qualified bankruptcy attorney will ensure your course is taken at the correct time.
The Debtor Education course, also called Financial Management, is the 2nd class that is required for your case to be successful. This class is taken after your bankruptcy is filed and is designed to assist people in getting back on their feet financially after filing for bankruptcy. Budgeting, money management, and credit rebuilding after bankruptcy are just a few of the topics covered.
Like the credit counseling course, timing is important when taking the second class. There is a deadline to take the 2nd class, so while you can absolutely take the class immediately after your case is filed, you want to make sure you don’t wait too long or you risk missing the deadline. Failure to take the class in the allotted amount of time will result in the dismissal of your case. If this happens, you must file a motion to reopen your case so you can take the class.
Are You Ready To Get Started?
The simplest way to begin your bankruptcy petition is to meet with an experienced bankruptcy attorney at Winterbotham Parham Teeple, a PC. We’ll walk you through your options and help you decide whether now is the time to enroll in a credit counseling program and start drafting your bankruptcy petition. Call us at 800.400.9000 today!