Excerpt from Chapter 12 – “Bankruptcy Concepts and Issues”

Bankruptcy – We Wrote the Book on It By Ronald C. Sykstus and the Bond and Botes Team of Lawyers

Excerpt from Chapter 12 – “Bankruptcy Concepts and Issues”:

A. Credit Counseling and Financial Management/Debtor
Education Requirements

For every bankruptcy case that is filed, a debtor must first complete
required credit counseling. This requirement came into being when the
dramatic change in law occurred in 2005. A person who wants to file
bankruptcy has to first obtain a certificate of credit counseling after having
attended an approved course. This certificate must be filed at the time
that the bankruptcy is filed or the bankruptcy will be null and void. Every
bankruptcy court in the country provides a list of approved credit counseling
organizations at the bankruptcy court’s website. This is not a long process
and people can get through the credit counseling course quickly.

There is a subsequent requirement while the bankruptcy is ongoing for
the debtor to attend and complete a personal financial management class,
also referred to as debtor education. This class must be completed and a
certificate of completion must be filed with the bankruptcy court prior to
a discharge being entered. This is another mandatory requirement put in
place under the bankruptcy law changes in 2005. While we recommend
all debtor education courses as approved by our local bankruptcy courts
in which we practice, we highlight Dave Ramsey’s course. His slogan
is “The course may be mandatory, but boring is optional.” Our clients
receive a book entitled Starting Over—Dave Ramsey’s Post Bankruptcy
Survival Guide, used in his starting over course. We recommend this one
because it promotes a change in life and reduction in debt stress. Dave
Ramsey’s organization wants this to be a change of life—so do we! We
hope you never need to be a bankruptcy client again!

Comments are closed.