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The debtor education course

Posted on Jan 22, 2016 by in The debtor education course |


Bankruptcy is a legal process of liquidation of business, if the debtor is company or liquidation of property, if the filer is and individual. Bankruptcy is filed when accumulated debts cannot be played anymore by debtor’s current income and assets. There are different types of bankruptcy, but major policy of each is to free the debtor from present overwhelming financial obligations and to help people or companies get a fresh start.

For the purpose of fresh start, every bankruptcy procedure involves the debtor education course.

Post – filing debtor education course is a step you are required to complete after filing bankruptcy and before you can receive discharge of your debts. It usually lasts for few hours and can be done in person, on the phone or as an online course. The major purpose of this course is to instruct you on how to manage your budget and incomes, how to use your credit and how to get the best out of the discharge in order to avoid future financial troubles.


In other words, it is training on how to make wiser financial decisions in future, after your bankruptcy is completed. Depending on the type of bankruptcy you filed, you are obligated to complete the course before getting discharge or before completing you last payment of repayment plan. Approved agency that provides the course will give you the certificate, as proof you have completed the course, which you have to submit to the court. The fee for the course varies, but if you cannot afford to pay it, there are ways to reduce it. 

The debtor education course should not be confused with the credit counseling. Credit counseling is also mandatory step within the bankruptcy procedure, but it takes place before filing and the purpose of it is to analyze the situation seeking for any alternative to bankruptcy you could use to handle your debts.

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