Know The Law – Credit Counseling And Debtor Education Courses

Published on July 13, 2020 by J. Andrew Meyer

Know The Law – Credit Counseling And Debtor Education Courses

In an effort to educate those who may be considering filing for bankruptcy, it is now a requirement that all bankruptcy filers complete educational courses before and after filing for bankruptcy. According to federal and state law, all individual bankruptcy filers are now required to complete pre-bankruptcy credit counseling and pre-discharge debtor education. These courses may not be provided at the same time. Credit counseling must take place before you file for bankruptcy whereas debtor education must take place after you file.

Certificates of completion for credit counseling and debtor education are required before the filer’s debts can be discharged. Only credit counseling organizations and debtor education course providers that have been approved by the U.S. Trustee Program may issue these certificates.

Special Notice For Filers in Alabama and North Carolina

By law, the U.S. Trustee Program does not operate in Alabama and North Carolina. In these states, bankruptcy administrators approve pre-bankruptcy credit counseling organizations and pre-discharge debtor education course providers. If you reside in either of these states, it is important that you contact your local bankruptcy court to determine requirements and eligibility of pre and post-bankruptcy education courses.

Pre-Bankruptcy Credit Counseling

Before you can successfully file for bankruptcy, the law requires completion of pre-bankruptcy credit counseling. The purpose of this counseling is to provide the debtor with options for repayment that may or may not include filing for bankruptcy. It is required even if you clearly cannot afford to pay your current debts. The counseling usually provides you with a budget based on your current obligations and expenses and makes recommendations on how to repay your debt.

When filing for bankruptcy, you must include a repayment plan and the recommendation of the counselor, even if the recommendation is that you should not file for bankruptcy. While the court will look at the counselor’s recommendation, it is not bound to follow them. Only approved credit counseling agencies will fulfill the requirement, so you must check with your local bankruptcy court to determine which counseling agencies are eligible. By law, the fee for the counseling must be reasonable, and there are options for those with limited or no income.

Post-Bankruptcy Debtor Education

After filing for bankruptcy, the court will not approve any discharge unless you complete a course known as debtor education. This course is designed to provide you with the tools and tips for rebuilding your credit after the bankruptcy process is complete. Upon successful completion of the course, you will be provided with a certificate that is then filed with the bankruptcy court. Similar to the pre-bankruptcy counseling, only approved credit counseling agencies will fulfill the requirements, so you must check with your local bankruptcy court to determine which counseling agencies are eligible. By law, the fee for the counseling must be reasonable, and there are options for those with limited or no income. As with any legal matter, it is best to consult with an experienced attorney who is knowledgeable in your jurisdiction’s rules and laws before filing for bankruptcy.

Florida Bankruptcy Attorneys

The attorneys and staff of The Bankruptcy Team have decades of combined experience helping clients with mortgage modifications, foreclosure defense and bankruptcy alternatives to effectively resolve their financial problems. If you are dealing with an unmanageable debt situation and are contemplating bankruptcy, reach out to The Bankruptcy Team to consult with one of our bankruptcy attorneys today.

J. Andrew Meyer

Andrew Meyer was born in Deland, Florida, in 1970. He graduated with an International Baccalaureate Degree from St. Petersburg High School in 1988, and attended the University of Florida, graduating in 1991 with a degree in Economics awarded with High Honors. Mr. Meyer also attended law school at the University of Florida, receiving his juris doctorate degree in 1995. While at the University of Florida, Mr. Meyer was inducted into Florida Blue Key and Phi Beta Kappa. Mr. Meyer was first trained as a lawyer by Richard T. Earle, Jr., and thereafter worked at the Attorney General's Office for the State of Florida in the Bureau of Criminal Appeals before becoming a senior staff attorney for the Florida Second District Court of Appeal. Mr. Meyer also served as a law clerk to the Honorable Chris W. Altenbernd, Retired, at the Second District Court of Appeal. Following his time at the Second DCA, Mr. Meyer worked at Carlton Fields, focusing his practice on appellate matters. In 2004, Mr. Meyer became an advocate for consumers as a partner at James Hoyer, and then later moved to Morgan & Morgan's class action department in 2009.

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Know The Law – Credit Counseling And Debtor Education Courses