Get Educated About Your Financial Situation With Bankruptcy
If you are considering bankruptcy, you are probably already planning how you will do things differently in the future. That is the wonderful thing about chapter 7 bankruptcy – it allows filers the opportunity to turn back the clock and do things the right way this time. With that in mind, the bankruptcy code now requires that filers take two bankruptcy educational classes. Read on and find out more about the credit counseling class and the personal finance class.
The Credit Counseling Class
Before you are allowed to file, you have to have completed this class. You will take the class and present the certificate of completion to your lawyer for including in with your other filing paperwork. This class, however, is no ordinary class and it has the potential to bar you from filing and getting the debt relief you need. It's vital that you understand how the way the class goes affects you. To be approved to file, consumers must provide proof that they cannot pay their bills and that involves more than just a list of debts like in the past. This class, therefore, is not actually a class but a budget submission. You must prepare a budget that accurately demonstrates your financial situation. List each and every monthly debt obligation along with your income.
The results of the budget should be submitted to a credit counseling agency approved by the bankruptcy courts and it will be evaluated. The agency is looking at how much money you have leftover after you pay your bills each month. Few bankruptcy filers are able to pay all their bills and are given the go-ahead to file their bankruptcy.
The Debtor Education Class
This class comes after you've filed and before your bankruptcy is final. Filers are able to take the class in person, online, over the phone, and by mail. Here, filers can learn about subjects like:
- Safely rebuilding credit after the bankruptcy.
- How to monitor a credit report.
- How to make a monthly budget.
- How to save for emergencies.
More Info About the Bankruptcy Classes
- They both cost money but some filers can reduce or eliminate the fees if they qualify.
- They both take only a few hours to complete.
- Proof of completing each class should be given to your bankruptcy lawyer.
- Let your lawyer look over the budget for the credit counseling class before you submit it.
Talk to your bankruptcy attorney service to find out more about these two required classes.