It is often required that an individual complete the debtor education class along with the bankruptcy filing process in order to have a successful bankruptcy process. In most situations, there are two classes that are required for those that are filing for bankruptcy. Prior to filing for bankruptcy, the individual will have to complete a credit counseling course. This has to be completed within a specific time frame before you file. The debtor education class is required to be completed within a certain period after filing. There can be serious consequences when the individual fails to complete the course. Here are a few important things that you need to know about the debtor education class when you are filing for bankruptcy.
Who Has to Take the Debtor Education Class?
In most situations, an individual will be required to complete the debtor education class when they file either a chapter 7 or chapter 13 bankruptcy. The rules tend to be somewhat different for other chapters of bankruptcy, because they tend to relate to businesses or other institutions. There are a few exemptions to those that will be required to complete the debtor education class. If you intend to complete the bankruptcy process as an individual, it is important to keep in mind that you will most likely have to take the debtor education class in order to effectively complete the process, unless you fall under one of the exemptions.
Exemptions to the Debtor Education Class
There are several possible exemptions in which the debtor education class requirement may be forgiven. If the course is not available in your district, it is likely that the court won’t require you to complete the class. If you have an incapacity or disability that will prevent you from effectively completing the course, it is possible that you won’t be required to complete the debtor education class. The course not being offered in a language that you will understand is another exemption to the debtor education course requirement. When an individual is serving on active duty in a military zone, they likely won’t be required to complete the debtor education course. Consulting with a bankruptcy attorney can help you to determine if you qualify for a possible exemption to the debtor education class.
What you Learn from the Class
There are many things that you will learn through the debtor education class, which is why it is often required when you file for bankruptcy. The course will teach individuals how to more effectively manage their money. It goes over superior budget preparation and how to create a solid financial plan. Your credit is an important component of your financial situation, so the debtor education course teaches you how to leverage your credit effectively and wisely. This class will also discuss consumer protection laws and agencies, as well as methods for dealing with unexpected financial crisis.
What to Do After Completing the Class
After you have completed the class, you will need to take the steps to ensure that you get credit for completing it. It is important to ensure that you receive a certificate of completion from the institution that you took the class from. After you have obtained the certificate of completion, you will need to file certificate with the bankruptcy court. This helps to ensure that you get credit for completion of the course and that your bankruptcy process can be completed as intended.
Related Fees to Expect
The debtor education course does generally come with fees, which is important to keep in mind when you undertake the bankruptcy process. The fees associated with the debtor education course vary depending on the provider that you choose to complete the course. In most situations, the fees will range from $5-50, as this is what the law considers a fair amount for the course. If your income falls below 150% of the state’s determined poverty line, you may be entitled to a waiver of the related fee for taking the debtor education class.
What Happens When you Fail to Complete the Class
It is critical to ensure that you complete the class as required when you file for bankruptcy. There is a specific time period in which you are required to complete the debtor education course. If you haven’t completed the class within this time period, the court will close your bankruptcy case without a discharge. This ultimately undoes all of the benefits that you may otherwise have obtained through the bankruptcy process. It won’t discharge your debt and you will have to file appeals and pay applicable fees in order to have your case reopened. To prevent this from happening, it is important to complete the class within the required time frame and ensure that you file the certificate of completion after finishing the class.
Options for the Debtor Education Class
There are many options that are available for taking the debtor education class in order to increase the convenience factor and allow you to obtain them. You can obtain the class in person, which often goes along with specific worksheets to help you follow along with. The class can also be obtained over the phone or on the internet. No matter what option you choose for your debtor education class, the course will generally take around 2 hours to complete. You should do your research in order to ensure that the course is approved and will meet the court requirements.
Here at the Rocky Mountain Law Office, we practice in the bankruptcy field. We are able to provide you with superior information regarding the process and the requirements that will be necessary throughout the process. It is important to ensure that you take the debtor education class within the required time period. Our expert team can help you to navigate the process and ensure that you complete it successfully. To learn more about the debtor education course or for the other requirements of filing for bankruptcy, contact us at the Rocky Mountain Law Office today!