Understanding Your Obligations When Filing For Bankruptcy
Posted January 20, 2023 in Personal Injury
Personal Injury Lawyers
If you are planning on filing for bankruptcy, the odds are that you have been living underneath the cloud of debt for quite some time. Calls from bill collectors and creditors, notices regarding wage garnishments, liens, repossession, foreclosure, and other adverse actions against you may be something that has become issues you are dealing with on a weekly – maybe even daily – basis.
Bankruptcy offers you a reprieve and, in a way, a fresh start. There are, however, some important facts you should know about your obligations, both during and after filing.
Pre-Bankruptcy Credit Counseling That Is Government-Approved
Prior to filing for bankruptcy, every petitioner must complete government-approved credit counseling. This typically involves an evaluation of the petitioner’s current financial situation, the development of a budget plan, and a discussion on bankruptcy alternatives.
Generally, these sessions take approximately 60 to 90 minutes. The organization providing the course must provide it at no cost for those who cannot afford to pay. It is important to note, however, that the request for a fee waiver must be made prior to the beginning of the session.
Once the petitioner has completed the counseling, a certificate of completion will be issued to them. These contain a number issued and produced through a centrally automated system and can only be provided through an organization approved by the U.S. Trustee Program. It is critical to ensure that the organization is authorized by the district the petitioner lives in. This information can be obtained through the U.S. Trustee’s website. Your bankruptcy lawyer can also direct you to a list of local organizations.
Post-Filing Debtor Education Course That Is Government-Approved
Once an individual has examined all of their options, should they choose to continue with their bankruptcy petition, they must then undergo a government-approved post-filing debtor education course. This course must be completed after they file but before their debts are discharged. The course must also be a government-approved course and can also be found on the same website as the pre-bankruptcy credit course.
The post-filing debtor education course is usually a longer course than the pre-bankruptcy credit counseling. Some of the topics covered include budgeting, how to manage your money, and using credit wisely. Once the petitioner has completed the course, they will receive a completion certificate, as well.
Considering Bankruptcy? Get the Legal Help You Need and Deserve
If you are struggling financially and see no light at the end of the tunnel, filing for bankruptcy may be the right choice for you. Contact a seasoned bankruptcy lawyer to find out what all of your legal options may be and how filing for chapter 7 or chapter 13 can help give you the fresh financial start you need. For more detailed information about your particular situation, most sure to consult with a seasoned bankruptcy lawyer.