In 2005, Congress added a step to the bankruptcy filing process. All individuals filing bankruptcy must participate in an approved credit counseling course within 180 days prior to filing for bankruptcy. Before you get a discharge at the end of your case, you must take another class on personal financial management. There are limited exceptions for both requirements — but very few people will qualify for them.
Here you’ll find detailed on information on these requirements, including where to find approved courses near you.
What Is the Difference Between Credit Counseling & the Debtor Education Requirement in Bankruptcy?
The credit counseling and debtor education courses are two separate requirements for Chapter 7 and Chapter 13 bankruptcy. Learn what they are and when you must take the classes.
Pre-Filing Credit Counseling
You must participate in a credit counseling program within 180 days before filing for bankruptcy. The purpose of credit counseling is to determine if an individual needs to file bankruptcy or if they would benefit from creating a repayment plan with their creditors.
Post-Filing Debtor Education
Before you get a bankruptcy discharge, you must take course on debtor education and financial management. The purpose of debtor education is to provide individual with financial knowledge and tools to better manage their income and debts post filing.