Credit Counseling Requirements Of Bankruptcy

When you file for bankruptcy, you must abide by the rules of the bankruptcy court, and one rule involves taking credit counseling courses. You must take two credit counseling classes to meet this requirement, and there are several important details you should know about these courses.

The Purpose
The bankruptcy court requires these courses for all individuals who decide to file for bankruptcy for several reasons. The first reason is to help educate people about the effects of bankruptcy. Secondly, they require these courses to help people learn how to avoid financial problems in the future so they will not end up in a position where they need to file again.

Timing Issues
When you decide to file for bankruptcy, you will need to take the two required courses at the right times. You must take the first credit counseling course within 180 days before you file for bankruptcy. You must take the second course after you file for bankruptcy but before the court discharges your debts in the case.

When you take these courses, you will receive a certificate which states the date in which you took the course. The certificate will serve as proof of completion of the courses, and you must give this certificate to your lawyer.

Things You Will Learn
Each course you take will teach you a lot of different things, but the first course offers a lot of information about bankruptcy alternatives and the effects of bankruptcy. The purpose is to make sure you know that there are other options, and it also helps you fully understand how filing for bankruptcy will affect you.

The second course offers a lot of information about personal finance. You will learn how to create a budget and how important a budget is. You will learn ways to save money, things you should avoid, and ways to reduce your expenses. The course also teaches you how to use credit wisely and how to rebuild your credit.
When you complete the courses, you should have a better understanding of how to manage your money and how to build your credit.

Finding Court-Approved Classes
Before you rush to take these required courses, you must make sure you choose a course offered by a courtapproved agency. Your lawyer will give you information about places you can take the courses, and you should use an agency your lawyer recommends, simply because it will definitely be a court-approved agency.

Class Options
One other thing you should know is that there are several different ways to take these courses. Some people prefer sitting in a classroom taking the classes, but most people prefer taking them online.

When you take them online, you will have to watch the courses in their entirety, and you will most likely have to answer questions. You can watch them at a time that is convenient for you, and you can even split up the courses over a few days if you do not have time to watch them all at once. Taking the courses online is the most convenient option you have.

Cost of the Courses
To take these courses, you will have to pay the fees for them. They normally cost around $50 to $100. If you cannot afford the fees, you could request a waiver. You can talk to your lawyer about this if you would like to find out how to go about getting the fees reduced or waived.

If you are considering filing for bankruptcy, contact William S. Orange III -Attorney At Law - to learn more about your options and the requirements for filing bankruptcy.

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