Debtor education is a required part of filing for bankruptcy. The purpose of debtor education and credit counseling is to help provide you with the tools necessary to avoid bankruptcy and start a healthy relationship with your finances.
Before you file for bankruptcy, you have 180 days to receive credit counseling and then must complete debtor education before you can discharge your debts.
What is debtor education?
Approved providers teach debtor education courses. The debtor education course includes information on money management, budget development and credit card usage. You can take debtor education in-person, online or on the phone. In most cases, the education session will last about two hours. It does cost a fee to attend a debtor education session, but in some cases, the provider may waive the fee for you.
What happens after debtor education?
Once you finish debtor education, you will receive a certificate to prove that you completed the course. Ensure you go to the U.S. Trustee’s website before receiving your certificate. The judicial district where you filed bankruptcy has to approve the debtor education provider for the education to count. In most cases, you do not pay extra for a certificate. The educator has to inform you of the cost of the certificate before you take your classes for you to face any additional fees.
Bankruptcy is a fresh start for many Americans. Still, before you can discharge your debts, you must prove to the government that you have the skills and knowledge necessary to manage your finances following bankruptcy.