Before a debtor can file for bankruptcy, they must take a credit counseling course beforehand and then a financial management course before the discharge can be granted. This requirement has been in effect since 2005, when the bankruptcy code was revised. These courses are intended to educate debtors and to aid in positive financial management.
Once the course became a necessity for filing for bankruptcy and receiving a discharge, people were under the impression that obtaining bankruptcy protection became more difficult. It’s really just a matter of knowing what steps to take beforehand to ensure a successful outcome.
The credit counseling course must be completed within 180 day pror to the filing of the bankruptcy petition. Be wary of just any course, not all are approved by the bankruptcy courts. Your attorney can present you a list of approved agencies to consider. Once the initial course is finished you will have to complete a financial management course after filing for bankruptcy. A certificate of completion of the second course must be filed within 45 days after the meeting of the creditors takes place. This will ensure that your discharge will go through as scheduled.
The courses may appear as just another hoop to jump through in the filing process, but many debtors that have completed it feel it was worth the undertaking in assisting them with planning a successful financial future.
Contact Minnesota Bankruptcy Attorney Gregory Wald at 952-921-5802 for information on which credit counseling agency to choose. Attorney Wald will go over the steps required to begin your bankruptcy case in order to achieve the best possible result.