Bankruptcy and the Required Debtor Education Course
Since the new bankruptcy law passed, filers must complete a debtor education course in order to receive their bankruptcy discharge.
Read on for more information or fill out the below form to connect with one of our sponsoring bankruptcy lawyers today--for free.
BAPCPA: The New Bankruptcy Law
The debtor education course, like the pre-filing credit counseling briefing, was introduced to the bankruptcy process by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA).
This pre-discharge financial management course is intended to make sure that those who file bankruptcy leave the protection of the court ready to manage their money.
Note that part of the new bankruptcy law’s name is “bankruptcy abuse prevention.” This indicates that the law was designed in part to prevent petitioners from running up debt and filing bankruptcy over and over again.
The debt management course is one of the requirements that theoretically helps prevent such abuse because it requires every filer to pass the financial management course, which is supposed to help keep petitioners out of debt once their bankruptcy cases are closed.
Skills You’ll Learn from Debtor Education
Developing a Budget
Staying out of debt usually means a person needs to live within their means. The debtor education course helps people create and live within a reasonable budget. Get more details about budgeting.
Managing Money
Another important skill is knowing how to best spend, save and invest the funds you have. This skill goes beyond budgeting to help you figure out some of your long-term goals. Learn more about saving.
Using Credit Effectively
Sometimes, people who have recently filed bankruptcy swear off credit because they’re reluctant to get into debt again. But, in today’s world of credit reports and credit scores, it’s difficult to get by without some sort of credit history. The financial management course should help you figure out how to use credit wisely.
Beyond the Financial Management Course
In order to receive your bankruptcy discharge, you must complete the debtor education course, which only lasts a few hours. In order to implement significant changes in your daily interactions with money, though, you’ll have to work continuously toward healthy financial practices.
We at Bankruptcy Central know how difficult debt management can be – that’s why we provide you with resources meant to help you stay on track. If you’re ready to start preparing for your debt-free future, you may want to check out some of the other resources we have to offer:
Remember: financial renewal is a process. To begin your journey, fill out our free online case evaluation form or call us toll-free at 866-288-7281 to speak with a local sponsoring bankruptcy lawyer.