Before you can file a petition for bankruptcy you must complete a credit counseling course. This course must be done within 180 days from the date you file. Upon completion of this course you will receive a certificate; this certificate needs to be submitted to the court to show the date of completion.
You must take this course through a credit counseling agency that is approved in the judicial district you are filing. You can find a list of approved agencies on the Department of Justice website. Minnesota approved agencies can be found here.
This is not a pass or fail course. A certificate is granted only based on completion. The pre-filing bankruptcy credit counseling course is designed to analyze your financial situation, present and discuss alternatives to bankruptcy and develop or cultivate a personal budget for you. A typical credit counseling course lasts between one and three hours and can be done online, in person or over the phone.
You will need the following items to complete the pre-filing bankruptcy credit counseling course:
One of the last phases of bankruptcy requires you to complete a Personal Financial Management and Debtor Education course. This course completion is legally required in order for you to receive discharges on your debt. This approximately two hour course will cover budgeting, money management and responsible credit handling. You can complete it online, in person or on the phone.
You must also take the financial management and debtor education course through an approved agency in your judicial district. You can find a list of approved agencies on the Department of Justice website. Minnesota approved agencies can be found here.
Upon completion you will receive the second certificate required by the bankruptcy court.
This new process aims to stop consumers from filing bankruptcy with the sole purpose of avoiding creditors. The bankruptcy education requirements will now walk you through all debt solutions, teach you responsible money management and provide you with the knowledge and resources to avoid future financial difficulty. Not only will this ensure you are choosing the right debt solution for your financial situation but will prepare you for life after bankruptcy with responsible financial administration.
In summation, the credit counseling course requirement will do the following:
If you work with a bankruptcy attorney it is likely you will have discussed most of these components already ensuring bankruptcy was the right debt solution for you. After you file bankruptcy and begin the financial management and debtor education course you can expect to learn about the following (and more):
As you can see this is a very thorough course that will provide you with the tools and expertise you need to prevent future financial trouble and responsibly manage your monetary situation. Prepare for credit counseling or professional consultations by downloading our free Debt Solutions 101 eBook to learn about all of the debt solutions available to you.