Credit Counseling and Financial Management Course Requirements in Bankruptcy
A Brief Description by the San Jose, California, Bankruptcy Attorneys at the Law Offices of Jon G. Brooks
Among the changes to bankruptcy law contained in the 2005 Bankruptcy Law changes (BAPCPA), were new requirements that debtors filing for either Chapter 7 or Chapter 13 bankruptcy protection participate in pre-approved credit counseling and debtor education courses. We generally liken these courses to traffic school for debtors. These financial management courses are administered only by private agencies who are approved by the U.S. Trustee program. A list of the pre-approved credit counseling and debtor education providers is published on the US Trustee’s website. The bankruptcy attorneys at the San Jose, CA Law Offices of Jon G. Brooks will assist you in locating an approved credit counselor here in San Jose or online. Many approved credit counseling and debtor education providers provide the required courses either online, over the phone, or by a combination of these. Many also offer counseling in languages other than in English.
The initial credit counseling course required for bankruptcy must be completed by the debtor within six months prior to filing a bankruptcy petition. Many of the government approved credit counseling and debtor education programs are available online, and the typical debtor can complete each of the respective courses in two hours or less. Once the debtor has satisfactorily completed the first of these programs, the credit counseling provider will issue a Credit Counseling Certificate which must be filed along with the bankruptcy petition. If the certificate is not filed with the petition, the Trustee will file a motion with the bankruptcy court to have the debtor’s case dismissed. This is just one example of the pitfalls and hoops introduced by the 2005 law which make it more important than ever that debtors retain knowledgeable San Jose bankruptcy lawyers and not try to navigate the system on their own.
After the bankruptcy has been filed, and generally within 45 days after the first Meeting of Creditors, the debtor must complete the second, longer course called the Debtor Financial Management course. This second financial management course for bankruptcy can last a bit longer than the first -- two to three hours -- and is aimed at providing the debtor with the financial literacy tools needed to successfully emerge from bankruptcy and manage his or her finances in the future. This second course, like the first, is mandatory. Without completing this financial management course requirement, and without filing a certificate from the credit counseling provider proving completion of this course, the debtor cannot obtain a Discharge from the Bankruptcy Court.
To discuss the credit counseling or financial management course for bankruptcy, or to schedule a free consultation with one of our experienced bankruptcy lawyers, please call us at 408.286.2766. Prior to our appointment, we ask that you download our Personal Bankruptcy Questionnaire, fill it out to the best of your ability, and bring this information with you to our meeting. Our office is located in San Jose, CA.
We are proud to be a Debt Relief Agency as defined by federal law. We help people get out of debt by filing for relief under the Bankruptcy Code.