A couple of years ago, the Congress of the United States overhauled the US Federal bankruptcy laws in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. One of the provisions that was written into the new procedures for filing for bankruptcy, was the requirement that all debtors must attend bankruptcy classes.
The debtor is the person who is going through the chapter bankruptcy filing. The new law mandates that the debtor must take two different types of classes during the course of the bankruptcy proceeding. The first class is for pre-filing counseling. The second required class is for pre-discharge education purposes.
During the first of the set of mandated classes, the debtor must attend a class that provides information and counseling from approved professionals before filing for bankruptcy. The purpose of the pre-filing counseling class is to help the debtor gain a full understanding of the process of a new bankrupt filing, to understand the consequences that bankruptcy leads to with regard to their credit score and long-term ramifications, and to investigate available alternatives to the drastic decision to file.
One of the aspects of the pre-filing bankruptcy classes is to have the consumer, or debtor, provide thorough information about their income, their household expenses and their various debts and monthly obligations. With this information, the pre-filing counselor can help the person, or couple, to carefully do a budget analysis. At this stage, some of the alternatives to filing for bankruptcy can be more fully explored to see if there might be something else they can do to improve their financial condition.
As part of the counseling, instruction will be given on the differences between filing Chapter 7 bankruptcy and filing Chapter 13 bankruptcy. As well, an overview of both the advantages of filing for bankruptcy and the disadvantages will be discussed. After the debtor goes through the classes for pre-filing counseling, they will be issued a certificate of completion. They must have this certificate of completion in order to proceed to the next step of filing for bankruptcy.
The second of the required classes that a debtor must take is the pre-discharge education class. The debtor is to take this class between the time that they complete the bankruptcy claim form and file it with the court and when the bankruptcy is discharged. A bankruptcy is not considered complete, and the debts are not eliminated, until the bankruptcy is discharged by the court. The discharge of the bankruptcy is the final step in the process.
Typically the pre-discharge classes are two hours in length. During that class the consumers learn about budgeting and more effective money management skills. They also learn about the proper uses of credit, how to re-build a positive credit record, how to recognize predatory lending practices and how to avoid such practices, and how to take steps to protect against identity theft.
Under the new laws, a bankruptcy can not be discharged until the debtor shows proof that they have completed both the pre-filing and the pre-discharge classes. Just at with the pre-filing counseling class, the debtor will receive a certificate of completion at the conclusion of the pre-discharge education. They must file this certificate with the court in order for their bankruptcy to be discharged.
The bankruptcy classes have to be taken from an institution that is on an approved list and which is authorized to issue the class completion certifications. The cost of the classes will vary depending on the organization that is offering them and depending on the format of the class. Some companies offer the classes online, while others provide classes over the phone and still others offer the traditional classroom environment. In most parts of the country, the cost ranges from $50 to $150 per class.
Last 10 posts in Consolidation Debt Program
- Bankruptcy - July 9th, 2009
- Michigan Bankruptcy Lawyer Helping Calm the Waters - July 8th, 2009
- Cleveland Bankruptcy Lawyer Make the Bankruptcy Process Easier - July 7th, 2009
- Flint Bankruptcy Lawyers Take a Look at the Emotional Side of Bankruptcy - July 6th, 2009
- Education Through Your Cincinnati Bankruptcy Attorney - July 6th, 2009
- Rebuilding Credit after Bankruptcy - June 6th, 2009
- The Guide On Learning About Chapter 13 Bankruptcy Information - June 5th, 2009
- New Bankruptcy Code - June 1st, 2009
- Debt Consolidation--Consolidate Student Loans? - May 31st, 2009
- A User Friendly Guide To Bankruptcy: The Problems It Poses - May 31st, 2009
There are no posts related to Undertaking Bankruptcy Classes Are Now A Mandatory Requirement.
21 comments
3 pings
Laci Zeschke says:
September 18, 2010 at 6:21 pm (UTC -6)
do you have any update on this?
wholesale electronics says:
September 18, 2010 at 1:16 pm (UTC -6)
Hey Im new here, and to the whole lifestyle. Im 14 and im startin to just chill on stuff you know what i mean? Im done bein a dick to people, done bein predjudice, and im done trollin. some things that prolly wont change tho are the cigarrettes and weed. so if anyone can give me some pointers or whatever for life or this site just hit me up. thanks
JustHost Review says:
September 12, 2010 at 5:27 pm (UTC -6)
Cheers for making this blog post.
2004 TurboTax Premier Home & Business Federal State says:
September 12, 2010 at 9:51 am (UTC -6)
concerning extra ones reply to your publish,we can easily try together with link exchange
equity release mortgages says:
September 8, 2010 at 1:18 pm (UTC -6)
I have to say this is the third time I have read your website and I am diggin it! I added your website to my rss reader. Looking forward to see more blog posts!
trance music says:
September 6, 2010 at 12:23 pm (UTC -6)
I seem to be having a problem / a hard time / trouble , subscribing to your RSS feed. It comes up with error 404. Let me know if its a known error or if its just me . Ive tried opera and firefox. Im using Eset Firewall and im not sure if its turned on . Im not Great with PCs. Ill come back to your site and see if you have responded. much appreciated
anti aging lotion says:
September 6, 2010 at 12:18 pm (UTC -6)
Finding websites with as much information as this one is always a pleasure I wll be sure to come back and visit again real soon, keep up the good work.
patent law firms says:
September 6, 2010 at 11:30 am (UTC -6)
Well, this is my first visit to your blog! We are a group of volunteers and starting a new initiative in a community in the same niche. Your blog provided us valuable information to work on. You have done a marvellous job!
quick payday loan says:
September 6, 2010 at 4:44 am (UTC -6)
Your work has always been a great source of inspiration for me. I refer you blog to many of my friends as well.
Trance Radio says:
September 5, 2010 at 8:50 pm (UTC -6)
Im sorry for the possible off-topic Guys, but could you inform me which web hosting company you are using right now I have a problem because my current web hosting company hostrator.com is kicking me off. They say that our website is using too many server resources. But our website only gets 400 visitors per day. Anyway, what would be your recommendations? Are you happy with your web hosting company? I am checking LCN at the moment, but is it real that they can provide unlimited disk space? I have contacted them and they say something like 2tb disk drive costs only $50 per month, so if some day we will start running out of disk space we will simply add a new 2000gb drive so can continue updating.. What do you think about it? Any ideas and web host name suggestions are much appreciated.
Hayley Raduenz says:
September 5, 2010 at 1:32 pm (UTC -6)
I stumbled upon your webpage and it is terrific for my needs. It has excellent and valuable content. I read through almost all of them and got lots from them. In my opinion, you are doing an excellent job. Stick with it! I would like to grate you for preparing such a fantastic website.
house music artist says:
September 2, 2010 at 12:34 am (UTC -6)
Trance Music is Interesting Nic Fanciulli
Frankie Jezierski says:
August 30, 2010 at 1:33 pm (UTC -6)
Hi, I’m a professional pianist and I’ve built a stupid rule that permits me to take a 15 min break every single 1 hour of practicing. Now, every break I’ve to do one thing totally diverse, so mostly I go to Google and seek for the suggested last hour website. It can be enjoyable to complete anything distinct and to learn about new points each and each day. BTW, now I’m playing. Chopin. Your web page is excellent, I wish I could stay longer, but I’ve to get back to play… Following time I’ll appear to visit again.
hypotheek says:
August 13, 2010 at 12:09 pm (UTC -6)
Hypotheken? Heel veel hypotheek informatie: verschillende hypotheekvormen, hypotheekrentes, nationale hypotheek garantie, hoe een hypotheek te vergelijken.
child attorneys says:
August 12, 2010 at 9:13 pm (UTC -6)
As most people know, mother are likely to have an attraction more to the court due to the societal affect that has been with our culture. So the household law usually favors the mother in this case. It is like they’re depended on each other. In most cases they will get at least temporary child custody
Siobhan Sotomayer says:
July 30, 2010 at 7:10 am (UTC -6)
Good article on your site, too.
budgeting for managers says:
July 26, 2010 at 4:03 pm (UTC -6)
Army Working Capital Fund: Actions Needed to Improve Budgeting for Car Asif A. Khan,Paperback, English-language edition,Pages:31,Pub by DIANE Publishing Company.
replica handbags says:
June 27, 2010 at 4:29 pm (UTC -6)
I feel you are too good to write Genius!Thanks for posting, maybe we can see more on this.
shopping says:
May 11, 2010 at 9:16 am (UTC -6)
There are several advantages to shopping online, the first one being the ability to shop at a time that is convenient to you, not just when the shops are open. The second advantage of shopping online is that goods are often cheaper as the seller does not have the costs of running a shop and having to pay wages to salespeople, insurance and all of the other running costs of a real world business.
kreg jig pocket hole system says:
April 30, 2010 at 10:53 pm (UTC -6)
The Kreg Jig takes advantage of a technique called Kreg Joinery. Unlike other techniques, Kreg Jig requires no glue, no complicated math, and no small army of clamps to make wood joints that will last.
debt elimination programs says:
March 24, 2009 at 7:03 am (UTC -6)
I came across this blog – interesting read
the credit master says:
July 4, 2009 at 2:16 pm (UTC -6)
the credit master…
After investing time and money to attract an applicant to your office the last thing you want to do is to disengage from any applicant– even those which can not be immediately recovered. Now you don’ t have to. For the first time, software makes it pos…
expert credit repair says:
April 15, 2009 at 1:00 pm (UTC -6)
expert credit repair…
Is credit repair a“ scam”? Not the credit repair companies that I am familiar with- their clients enroll, pay a fee and generally graduate the program with higher (usually high enough to qualify for a mortgage) credit scores. That would seem to dis…
credit restoration advice says:
April 14, 2009 at 2:18 pm (UTC -6)
credit restoration advice…
LaMalfa: I almost fell out of my chair when I was going through Countywide financial statements last week. Countrywide is one of the largest mortgage companies in America. Right now, almost one- quarter of its subprime loans are delinquent — and …