In order to receive your final discharge in a Chapter 7 Bankruptcy or Chapter 13 Bankruptcy, every debtor must obtain Debtor Education Training from an approved Debtor Education Provider.
Debtor Education – Bredow Law PLC
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The purpose of the debtor education course is to teach you how to manage money and use credit wisely after bankruptcy. Debtor education and credit counseling are not the same courses. Each debtor is required to take two courses in any bankruptcy case. Debtors must take a Credit Counseling course before they file bankruptcy, and all debtors who file bankruptcy must take the Debtor Education class after they file their case. The Debtor Education course may not be taken in the same session as the credit counseling course. They must be taken separately.
To assist individuals in finding a credit counseling agency, the USTP maintains a list of approved providers on its website: https://www.justice.gov/ust/list-approved-providers-personal-financial-management-instructional-courses-debtor-education
If a debtor is unable to attend a debtor education course (such as an incarcerated or hospitalized client) a person with the debtor’s lawful power of attorney may complete the course on behalf of that debtor, if the power of attorney is valid under state law and grants the representative the authority under state law to file a bankruptcy petition.
If you cannot afford to pay for debtor education a provider is required to inform clients whether the services are available for free or at a reduced rate, based on a client’s ability to pay, before providing any information to or obtaining any information from a client, and before beginning an education session. Fee waiver policies may vary. At a minimum, however, a client whose household income is less than 150 percent of the poverty level is presumptively entitled to a fee waiver or fee reduction. The poverty level is defined by the poverty guidelines updated periodically in the Federal Register by the U.S. Department of Health and Human Services under the authority of 42 U.S.C. § 9902(2). For the 2018 poverty guidelines see the following link: Search Federal Register for Annual Poverty Guideline Updates
Do not delay in taking your Debtor Education Course. In a Chapter 7 case, the course must be taken within 60 days after your Section 341 Meeting of Creditors is first scheduled. In a Chapter 13 case, the course may be taken at any time during a three-year to five-year repayment plan. But, in either a Chapter 7 Bankruptcy or Chapter 13 Bankruptcy, a debtor must complete the debtor education requirements and file a Certificate of Completion of the course before the end of the case, or the Court will not issue a final discharge. If the Certificate of Completion is not filed, the Court can dismiss your case without issuing a final discharge of your debts. If the case is closed, the debtor must file a motion to reopen the case before the Court will allow the Certificate of Completion to be filed. Your attorney is likely to charge you legal fees to file a motion to reopen the case and file the Certificate and the Bankruptcy Court charges $260.00 to reopen a Chapter 7 case and $235.00 to reopen a Chapter 13 case.
If you are facing difficult financial troubles, if you are unable to pay your debts, are facing foreclosure or the repossession of your car, contact Bredow Law PLC, immediately for a free telephone consultation. We can help you understand your options and get you on the way to your own Fresh Start. Follow this link: Contact Us to contact Bredow Law PLC or if you prefer, call us at (248) 795-5516 or email us at info@bredowlaw.com
