When you file for bankruptcy, you may be overwhelmed by how tedious and complex this process can be, as there is a considerable amount of paperwork you’ll need to complete. However, one aspect of filing that many are unfamiliar with is the debtor education courses. As such, if you are unsure what to expect during these courses or whether or not they are required, the following blog explores what you should know, including the importance of working with a Memphis, TN consumer bankruptcy lawyer to help you understand your rights and navigate this difficult matter.
What Role Does Debtor Education Play During a Bankruptcy Case?
If you have already declared bankruptcy in Tennessee, you know that you must complete pre-filing courses before you are able to submit the required documents to initiate this process. While these focus on alternatives to bankruptcy, like debt management, the debtor education courses have a different approach.
Debtor education courses occur at the end of bankruptcy, and help those who have filed learn how to manage their expenses to reduce the risk of needing to file again. As such, these courses aim to teach those who have completed bankruptcy how to budget, manage their funds, and rebuild their credit. It’s imperative to understand that these courses are integral to helping provide filers with the necessary tools and education to reap the full benefits of the bankruptcy process and the financial fresh start they receive.
Is This Mandatory, and When Must I Complete This Course?
When you file for bankruptcy, you must understand that completing the debtor education courses, like the pre-filing course, is mandatory. As such, you must complete these courses prior to the finalization of your case in order to receive the discharge of your remaining eligible debts.
When you must complete the course will depend on the type of bankruptcy you have filed. In general, you’ll find that if you have filed Chapter 7, you’ll need to complete the course within 60 days of the 341 Meeting of Creditors. If you are currently participating in a Chapter 13 repayment plan, the course must be completed prior to the final payment of your plan.
Failure to complete these courses will generally result in the denial of discharge of eligible debts. As such, upon completing the required courses, you’ll need to submit Form 432, Certification About a Financial Management Course. Additionally, you’ll need to submit the course completion certificate you receive at the end of the meeting.
Filing for bankruptcy can be an overwhelming, stressful, and confusing process, which is why working with an experienced attorney to assist you during these matters is critical. At the Arnold Law Firm, we understand that debt can take a serious toll on your life, which is why we are committed to doing everything possible to help you regain control. If you are ready to file for bankruptcy, do not hesitate to contact our team today to learn how we can guide you through these matters.
