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Faqs About The Debtor Education Course In A Chapter 13 Bankruptcy

A Chapter 13 bankruptcy filing has several requirements that must be met before it is approved by the court. One of those is completing the debtor education course. If you are planning to file for bankruptcy, here is what you need to know about the course. 

What Is the Debtor Education Course?

One of the focuses of the court during your bankruptcy filing is ensuring that you are able to identify what caused your financial issues and know what steps you can take to avoid them in the future. It is for this reason that the court orders the debtor education course. 

During the course, you will learn tools that can help you use the bankruptcy filing to your advantage. For instance, you will learn how to make smart decisions when it comes to your credit. You also learn how to better manage your money and the importance of creating and sticking to a budget. 

You have to take the course after you file for bankruptcy. You can opt to take it in-person with an approved provider or online. If you cannot afford to pay for the class, talk to your attorney about applying for a waiver. 

What If You Do Not Take the Course?

In the event that you fail to complete the requirement by the due date set by the court, your bankruptcy filing could be dismissed by the judge. If that happens, you could be in a worse financial situation that you originally were. 

For instance, when you initially file for Chapter 13 bankruptcy, you receive a stay that keeps your creditors from taking steps to receive payment, such as repossessing your car. However, if your case is dismissed, the stay is lifted and you are once again faced with dealing with your creditors. 

If you were unable to complete the course due to circumstances beyond your control, the court might agree to waive the course or extend the time you have to take the course. Whether or not an excuse is acceptable is at the judge's discretion. You will need to present evidence to support your excuse. 

For instance, if you were unable to attend due to physical limitations, a letter from your doctor should be provided to the court or your bankruptcy trustee. 

To learn what other requirements are necessary and to further discuss the debtor education course, consult with an experienced Chapter 13 bankruptcy attorney. He or she can help ensure that you are properly prepared to file. 

For a bankruptcy attorney, contact a company such as Morrison & Murff.