Bankruptcy Attorney | What is a Debtor Education Certificate?
Bankruptcy Attorney .When filing for bankruptcy, many first-time filers might be confused with two required components to their case: a pre-filing credit counseling certificate and a debtor education certificate. So what is a debtor education certificate and why do I need one? And how is it different from a credit counseling certificate?
Here’s the rundown on the differences, and why you need a debtor education certificate.
The Difference Between Credit Counseling and Debtor Education
Though the two seem similar in objective–they both teach you about better finances and solutions over debt–they are actually two different courses that play important roles at different times. The major difference is that pre-filing credit counseling has to happen before you even file for Chapter 7 or Chapter 13 bankruptcy. To even file for bankruptcy, you must present a certificate from an accredited agency that states that you’ve completed credit counseling and understand that bankruptcy is your best solution. In contrast, the debtor education course comes after you have filed but before you are formally discharged of your debt.
The debtor education course is 2 hours in length and is provided in English or Spanish. The cost of taking the course is the same for an individual or for joint filers. In addition, you can complete the course in one sitting, or save your progress and complete the course over a period of time.
Why You Need A Debtor Education Certificate
Your bankruptcy attorney will tell you the education certificate is important because you will not receive a bankruptcy discharge from the courts without it. After filing for bankruptcy, the only way to complete your case and see the end of the process is to complete a debtor education course and submit the certificate of completion with your case. Until then, the court cannot discharge your bankruptcy.
There is a different timeline for completing your debtor education course when you are filing for Chapter 7 and Chapter 13 bankruptcy. For a Chapter 7 filing, you will need to complete your debtor education course within 60 days of the initial date set for your meeting with creditors (the 341 hearing). When you file a Chapter 13 bankruptcy, you will have to file your completion certificate before your last plan payment, which can be 3 to 5 years later.
However, a debtor education course and its certificate are important for many other reasons. For one, it teaches you how to achieve a better financial position after filing. It provides strategies on how to manage your money, use your credit wisely, prepare a savings and spending budget, and understand consumer protection laws and agencies to help you protect yourself from financial pitfalls.
The overall goal of the debtor education course is to not only allow you to live a life with less financial stress but also to prevent you from having to file for bankruptcy in the future. With the knowledge you gain from the course, you will be able to rebuild your credit score and also maintain a healthier financial lifestyle after bankruptcy.
Overall, your post-filing debtor education course does not have to be stressful. Rather, it is a key component to ensuring your discharge, and can also give you the information you need to jumpstart your financial future. To start your debtor education course today, contact us. We can help you begin and complete your bankruptcy process. Contact your bankruptcy attorney to get started. -startfresh
If you are ready for a fresh start, contact the experts at Pinkston & Pinkston, a bankruptcy attorney you can trust.