The debtor is the individual who has filed for chapter bankruptcy. During the course of the proceeding, the new law requires the debtor to complete two distinct categories of classes. Class one is for pre-filing counseling. The second required course serves as pre-discharge education.
Before declaring bankruptcy, the debtor must attend the first of the required seminars, which provides information and counseling from approved professionals. The objective of the pre-filing counseling class is to assist the debtor in gaining a comprehensive understanding of the bankruptcy filing process, its effects on the debtor's credit score and long-term ramifications, and available alternatives to the drastic decision to file.
One of the goals of pre-bankruptcy classes is to guide the debtor through the process of a comprehensive financial analysis with the pre-filing counselor. This includes analyzing their income, all of their monthly expenses, all of their debts, and their monthly obligations. In lieu of filing for bankruptcy, the next stage is to conduct a budget analysis and consider alternative options based on the information provided.
As part of the counseling, the differences between Chapter 7 and Chapter 13 bankruptcy will be explained. In addition, both the advantages and disadvantages of declaring for bankruptcy will be discussed.
After completing the pre-filing counseling classes, the debtor will receive a certificate of completion. This completion certificate is required for them to proceed to the next phase of registering for bankruptcy.
Pre-discharge education is the second of the necessary programs that a debtor must complete. This class is to be taken by the debtor between the time they complete the claim form for insolvency and register it with the court and the time they are discharged. A bankruptcy is not final and the debts are not eliminated until the court grants discharge. The final stage of the process is its discharge.
Typically, pre-discharge classes last for two hours. During this course, consumers learn budgeting and better money management techniques. They are also instructed on the proper use of credit, how to rebuild a positive credit history, how to recognize and avoid predatory lending practices, and how to protect themselves from identity fraud.
According to the new laws, it cannot be discharged until the debtor provides evidence that he or she has completed both the pre-filing and pre-discharge classes. Similar to the pre-filing counseling course, the debtor will receive a completion certificate upon completion of pre-discharge education. This certificate must be filed with the court for their bankruptcy to be discharged.
The bankruptcy classes must be taken at an institution that is on an approved list and authorized to issue certifications of class completion. The cost of the classes will vary based on the organization providing them and the class structure.
Some companies provide classes online, while others offer courses over the phone, and still others provide classes in a traditional classroom setting. In the majority of the country, the cost per class ranges from $50 to $150.""
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