Know About Credit Counseling and Debtor Education Requirements

When a consumer is filing for bankruptcy, they will get credit counseling. At the time of conclusion of your case, you will receive debtor education. In Pennsylvania, these two are very important. How these two will happen and what you need to know about them? Take a look.

Going for bankruptcy filing will take you through some necessary steps. As a debtor, you cannot spontaneously choose consumer bankruptcy. You have to provide proof that you have received and completed your credit counseling.

You must be wondering what it is and whether a fee is required for it or not or where you have to go for this. Basically, a credit counselor is help that might save you from getting bankrupt. They will look through and follow your financial situation and find out if bankruptcy is the only solution for you or you can deal with your financial situation in some different way rather than filing for bankruptcy.

When you are choosing a credit counselor, you cannot just go to anyone. You will have to go to the organizations that are approved by the United States Trustee’s Office.

For getting credit counseling, you will have to pay a nominal fee that might range from $10 to $50. But in some cases, you might not have to pay the fees of a credit counselor. However, the credit counseling can be dropped in the following cases:

• If the debtor is on active military duty
• If the debtor has filed immediately
• If the debtor has physical and/or mental disability that might make counseling ineffective

Talking to a Pittsburgh bankruptcy lawyer can give you even more insight into credit counseling and how it can be a good option for you.

Just like credit counseling while filing for bankruptcy, a debtor must get debtor education before they get the discharge. Under 11 U.S.C. §1328(g)(1):

“The court shall not grant a discharge under this section to a debtor unless after filing a petition the debtor has completed an instructional course concerning personal financial management described in section 111.”

Debtor education is kind of an exit interview to conclude the bankruptcy case. The aim of this program is to make you learn about the skills that will prevent you from landing in a similar situation with excessive financial burden and overspending.

About the timeline of the debtor education, you will need to get the education within 45 days of your 341 meetings or Meeting of Creditors.

Just like credit counseling, you will need to get the debtor education from the federally-approved organization. And also, you will have to pay a nominal fee for this. The courses you will be taking should be of minimum two hours. For some debtors, it might take longer to learn and complete all the requirements. If you have a time constraint, then you don’t have to attend a physical class. You can get the debtor education on phone or online classes.

Once you complete the course, you need to file Form 23 of Debtor’s Certification of Completion of Instructional Course Concerning Financial Management.

Just like credit counseling, debtor education can be ruled out too in some cases which can include:

• If the debtor is on active military duty
• If the debtor is not fluent in the language of the course and there is an understanding barrier

With the help of a Pittsburgh bankruptcy lawyer, you will get more insight into debtor education.

If you are looking for an expert Pittsburgh bankruptcy lawyer, come to us at Pittsburgh Bankruptcy Law Group. We are the experts offering the right advice.