Pursuant to the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), consumers seeking to receive a discharge of a chapter 7 or chapter 13 bankruptcy case are required to complete a personal financial management session with an approved counseling agency. This mandatory course must be completed prior to the debtor receiving a discharge.
Filing a bankruptcy case is the means to an end – receiving a discharge order. This is the reason why debtors file bankruptcy cases. Before a discharge order is issued, all bankruptcy debtors must complete a consumer debt management course. Once this course is completed, debtors receive a certificate indicating their compliance.
The post-bankruptcy filing credit counseling course has some similarities to the pre-bankruptcy credit counseling course in that it teaches debtors to manage money and use a budget properly.
The post-bankruptcy course may be taken online, in person, or over the telephone. The cost is generally between $50-100, but the fee may be waived if a debtor meets the qualifications. The course takes approximately two hours to complete.
Again, it is important to note that not until this course is taken, will the bankruptcy court issue a discharge order to the debtor. Then, you will be ineligible for a discharge and you will remain legally obligated to pay your debts.
Debtors may take this class immediately after the case is filed, thus allowing them to complete this requirement well in advance of receiving their discharge order.
Debt collectors want to be repaid and are rarely sympathetic. They will not stop calling unless you know your legal rights. An experienced bankruptcy attorney like Theron Morrison can make them stop calling you and assert your legal rights on your behalf. Call 801.456.9933 today to schedule a FREE consultation. We are Utah’s only statewide bankruptcy law firm and have locations in Ogden, Logan, Sandy, and St. George to serve the residents of the counties of Weber, Cache, Salt Lake, Utah, Morgan, Davis, Washington, and surrounding areas.
