As you are preparing yourself to file for bankruptcy, you may think that all you need to do is get your paperwork in order and submit it. Unfortunately, there are some other requirements that you must meet for the bankruptcy to be granted. A 2005 law not only made the requirements for bankruptcy more strict, but required people who file to take classes to educate themselves about their finances. Here is what you need to know about the two classes.
Credit counseling is a class that you must take within 180 days of your bankruptcy filing. This is because the certification of credit counseling is actually required as part of the bankruptcy legal documentation.
The purpose of credit counseling is to let a counseling agency view your personal finances and let you know if bankruptcy is the right course of action for you. While credit counseling is considered a class, it's actually more like a test that you must pass. If the result of the class is that you are capable of paying back your debts, then you won't be legally allowed to use bankruptcy.
Be aware that you can challenge the decision that is made about your finances during credit counseling. It is best to work with a lawyer that can write up a proper rebuttal, so do not get discouraged if you are told you do not qualify.
Credit counseling classes can be done in a variety of situations, which includes in person, online, or on the phone. Your income level will also determine who much the class costs.
The finance class will be less involved and much less stressful overall. This class can be taken after you file, but must be taken before your debts are discharged. The purpose is to ensure that you know how to manage your money. It goes over important personal finance information, such as how to create a budget and save for an emergency. The finance class can also be taken in a variety of ways just like credit counseling.
You will also be told how you can recover from your bankruptcy. You may be in for a shock when it comes to how your credit is affected and what it means for borrowing money in the future. The course will guide you through how to build your credit back up so that everything will go back to normal again.
For more information about the steps you must take when filing for bankruptcy, talk to a lawyer like Greg Dunn Bankruptcy Attorney.