People file bankruptcy for many reasons. Some people experience a financial crisis such as unemployment, divorce, loss of a spouse or a medical emergency. Some people file bankruptcy because they may lack the skills, experience and education to manage their money wisely. Regardless of the reason why you need to file a bankruptcy, you are entitled to receive the same fresh start and debt relief that any other person filing bankruptcy receives. However, all debtors are required to complete a mandatory debtor education course to receive a bankruptcy discharge.
What is the Debtor Education Course?
The goal of filing a bankruptcy case is to receive a bankruptcy discharge. The bankruptcy discharge is the order that relieves you from the legal liability to repay the debts that are being discharged through your bankruptcy. In other words, the bankruptcy discharge is the document that “wipes out” your debts. According to the Bankruptcy Code, in order to receive a discharge the debtor must first complete a debtor education course and file proof of completion of the course with the bankruptcy court. Failure to complete the debtor education course will result in your discharge being denied.
The debtor education course was designed to help debtors learn ways to manage their finances so that they could avoid some of the mistakes that may have led them to bankruptcy. For example, if you have never used a personal budget because you do not know how to create a budget or you thought budgets were not useful, the debtor education course will teach you about creating and living within a budget. While some life events cannot be avoided such as a medical emergency or loss of a spouse, the debtor education course will teach you ways to prepare for life’s emergencies so that you will be financially secure should this happen to you again.
Your debtor education course is full of information, facts and tools that will help you manage your money efficiently, use credit wisely and live within a budget. It will provide you with the necessary information and knowledge to create a better level of financial well-being for you and your family. However, you will only benefit from the debtor education course if you choose a good provider and take the course seriously.
Choosing the Best Debtor Education Course for You
There are many companies that offer the debtor education course required by the bankruptcy court. In order to qualify as a debtor education course, you must choose a company that is approved through the United States Trustee’s Office. Your attorney can help you by providing a list of approved companies and directing you to companies within your area that have a good reputation with other clients.
When choosing a company for your debtor education course, you should consider the following things.
Experience – You want a company that has been providing the course for several years because that company will have developed a course that is comprehensive and educational. A company that is just beginning may not have worked out all of the problems with the course material.
Customer Service – Does the company have a phone number you can call if you have questions? Is the website user friendly? Do you have access to a counselor after hours and on weekends? Your attorney will likely be able to pass on comments from previous clients about companies that provide the best customer service.
Fees – Each company sets its own fees for the debtor education course. You can find fees as low as $10 but some of those companies do not provide direct access to a live person. In some cases, it may be more beneficial to use a company that has a slighter higher fee but better services.
Contact an Experienced Mount Holly Bankruptcy Attorney
Personal Approach, Professional Service, Affordable Payment Plans
The Law Office of Travis J. Richards, LLC is a full-service Mount Holly bankruptcy law firm focused on Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, debt consolidation, credit repair, tax liens, student loans and foreclosure. We represent clients in Burlington County and throughout South Jersey.
Contact our office at 609-267-5297 to schedule your free consultation to discuss bankruptcy and non-bankruptcy alternatives. You may also use our convenient online contact form and one of our friendly, professional staff members will contact you to answer your bankruptcy questions and/or schedule a free consultation with Travis J. Richards.
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