Regardless of whether you are applying for Chapter 7 bankruptcy or Chapter 13 bankruptcy, you may be required to attend two credit counseling educational courses. Continue reading to learn what pre-bankruptcy credit counseling and post-bankruptcy debtor education consist of and how an experienced Louisville, Kentucky consumer bankruptcy attorney at Schwartz Bankruptcy Law Center can guide you through these two.
What does pre-bankruptcy credit counseling consist of?
Your pre-bankruptcy credit counseling requirement may be fulfilled with a nonprofit agency approved by the United States Trustee’s Office. And this must be fulfilled within 180 days of your initial bankruptcy filing. Here, the agency may review your current income and the debts you are facing. Then, they may advise whether a formal repayment plan must be established via bankruptcy or whether an informal repayment plan is doable.
Once you complete this educational course, you will have to prove your attendance to the bankruptcy court. This may be done by presenting a certificate of completion, a copy of the repayment plan you worked on at the agency, and any other relevant pieces of bankruptcy paperwork.
Importantly, you must attend this counseling regardless of whether you believe that a repayment plan is not feasible based on your current financial situation, or even if you believe that certain debts are unfair to have to pay off. This may be up to the agency to comment on and the bankruptcy court to ultimately decide on.
After reviewing your suggested repayment plan, the bankruptcy court may determine that you may need to convert your Chapter 7 bankruptcy to a Chapter 13 bankruptcy. With this, you may have to make a case as to why you cannot pay off all of your debts.
What is post-bankruptcy debtor education?
Once you complete your pre-bankruptcy credit counseling, you are not exactly in the clear. Rather, you are still obligated to attend a post-bankruptcy debtor education course. This course may offer you financial management tools that you can take with you post-bankruptcy. This may entail tips on creating a budget best suited for your current income and lingering debts, and advice on how to rebuild your credit score post-bankruptcy, among other tools.
This requirement must be fulfilled within 60 days of your first meeting of creditors. As a reminder, this was the meeting you attended with a trustee that verified your identification and bankruptcy paperwork, along with even creditors that appeared to ask about your financial matters. Further, proof of your attendance may include a certificate of completion.
There are very limited exceptions to these requirements. Without further ado, you must retain the services of a skilled Louisville, Kentucky consumer bankruptcy attorney immediately. We can assure you that we are passionate about your case, so contact us today.