Being in debt and receiving endless calls and letters from creditors can be overwhelming. If you have decided to file for bankruptcy after assessing your situation, you will observe certain procedures, including taking courses.
Here are two courses you are required to complete:
Credit counseling
A credit counseling (CC) course helps you understand your finances in-depth and, in turn, decide whether filing for bankruptcy is your only option or if you can repay your debt. Even when it’s apparent you can’t repay, you need to take this course.
You should obtain credit counseling from an agency approved by the U.S. Trustee program before you can file for bankruptcy. If you file before completing the course, your case can be dismissed.
Does it work?
CC courses are beneficial. The agency you join will provide you with the needed tools to help you get out of debt. For instance, they can help you develop a realistic budget that allows you to repay some of the debts.
You may not need to employ all the plans they provide, but you should disclose them to your creditors.
Debtor education
After you have filed for bankruptcy, you will take a separate course called debtor education (DE). DE differs from CC because it provides tools to manage your finances in the future. This course may cover income, expenses and saving strategies. Essentially, how to rebuild your life after bankruptcy.
You should take this course from an approved debtor education provider. You must provide proof that you completed a DE course to receive a bankruptcy discharge.
These two courses are crucial if you want to declare bankruptcy. It may be best to consider legal guidance to get adequate information about the moves to make.
