Some may not be aware, but there are additional steps to take after you file for bankruptcy. In order to receive a discharge for your bankruptcy, you must complete the debtor education course. This makes it an important and critical step in your bankruptcy process.
To ensure that you complete the entire process properly so that you may obtain your discharge, it is critical that you understand what the course consists of.
Once you file your case, you must take the debtor education course. There are a few exceptions to this requirement, including:
- Serving active duty in a combat zone
- Having a disability preventing course completion
- Lack of availability of an adequate course in your district
If none of these issues apply to you, expect to take the course.
Providers and cost
You must take the course from an approved provider. In Alabama, bankruptcy recipients must go through the Bankruptcy Administrator. The United States Courts provide a list of bankruptcy administrators that you may utilize. Thanks to the Executive Office of U.S. Trustees, the reasonable fee for a debtor education course is $50 or less. If your household income is 150 percent below the poverty line, you may qualify for a fee waiver.
The purpose of the course is to provide financial education in efforts to avoid such financial situations in the future. Through the course, attendees learn various concepts, such as:
- Money management
- Budget preparation
- Dealing with financial crisis
- Using credit wisely
- Consumer protection laws and agencies
The course is available online or by phone, as well as in person. Those who take the course online or by phone receive a workbook and must complete a test at the end of the course. Upon completing the course, attendees file Official Form 23, the Debtor’s Certification of Completion of Post-petition Instructional Course Concerning Personal Financial Management, with the court.
Once all steps are complete, the court issues the discharge and the bankruptcy is complete. Make sure that you understand and complete all of the steps and requirements so that your bankruptcy can flow as smooth as possible.