The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) requires Chapter 13 Bankruptcy filers to complete a course in "personal financial management" prior to filing for Bankruptcy.
In addition, a pre-discharge debt education program must also be completed. The Debtor Education course generally covers a variety of financial topics, the goal of which is to give filers, who are seeking a fresh financial start, the necessary tools to build a strong financial foundation. Debt education courses may provide information on the following: setting short-term and long-term financial goals, living within a budget, obtaining credit reports, protecting the filer's identify from theft, determining net worth and re-establishing good credit.
Most credit counseling agencies provide debt education courses on-line, over the telephone or in person. Upon finishing the program a certificate should be issued to the filer to provide proof of completion, and the certificate must be sent to the bankruptcy court. It is important to find a credit counseling service which is approved. The course should be at least 2 hours of instruction. Debt education courses should be provided regardless of the filer's ability to pay. Failure to complete the debt education coursework may be grounds for refusal of discharge of debt.
More Help on Debtor Education
- Credit Counseling - The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 required individuals to take a government approved credit counseling course 180 days prior to filing bankruptcy. - read more
- Discharge of Debt - Bankruptcy provides a federal process for receiving protection against one\'s creditors and at its completion may allow the debtor to be released from certain types of \"dischargeable\" debt. - read more