A bankruptcy certificate is a document that proves you have completed a debt counseling session and a debt education course. These are two required steps in the bankruptcy process. You will need a bankruptcy certificate to prove you have completed debt counseling before you can file your application. Once you file for bankruptcy, you will need to take a debt education course and obtain a different bankruptcy certificate as proof.
Definition and Examples of Bankruptcy Certificate
Bankruptcy is a legal process that can give you a fresh start when debt is causing you undue burden. However, before you can apply for personal bankruptcy protection, you must undergo a debt counseling session. You must also complete a debt education course before the court will grant your request to discharge your debts.
How Bankruptcy Certificates Work
Only debt counseling companies and debt education courses approved by the U.S. Trustee Program can issue bankruptcy certificates. The exception is if you live in Alabama or North Carolina, where the U.S. Trustee Program does not operate. If you live in Alabama or North Carolina, you will need to find a debt counseling service and debt education course that are approved by the bankruptcy trustee in your judicial district.
What Happens During a Debt Counseling Session?
When you meet with a debt counseling service, your counselor will help you assess your financial situation and determine whether bankruptcy is the right choice for you. The service should address the specifics of your financial situation and the factors that led to it. It should also provide a plan for managing your finances so that you do not increase your debt.
What Happens During a Debt Education Course?
After filing for bankruptcy, you will need to complete a debt education course. The curriculum for this course includes financial planning, money management, and how to use credit wisely. Upon completion, you will receive a bankruptcy certificate that must be submitted to the court to discharge your debts. The course provider may be able to submit the certificate to the court on your behalf, but that is not required. If they do not send it directly to the court, you will need to submit it to the court yourself.
Requirements for Bankruptcy Certificates
A debt counseling session typically lasts between 60 to 90 minutes, and can be done in person, over the phone, or online. The cost of a debt counseling session is approximately $50.
A debt education course takes about two hours to complete, and you can also complete it in person, over the phone, or online. Generally, the cost ranges from $50 to $100.
All fees related to debt counseling services and financial education courses must be disclosed upfront. No provider can charge you additional fees when their certification services are free; you can request a waiver if you cannot afford the cost. You will typically be eligible if your household income is less than 150% of the federal poverty level. Agencies are required to provide the service for free if you cannot pay.
What to Look for in a Bankruptcy Counselor
If you have met with a lawyer and are certain you will be filing for bankruptcy, the counseling session will usually be just a formality. However, if you are exploring your options, ask the potential counselor whether their organization offers other services like a debt management plan. You can also inquire about the counselor’s credentials and how they keep your personal and financial information secure.
It is essential to find a debt counseling service that is approved by the U.S. Trustee Program or the trustee for your bankruptcy in your judicial district to obtain a bankruptcy certificate. You can find a list of approved debt counseling companies and debt education course providers on the U.S. Department of Justice website.
Conclusions
Main
– You will receive separate bankruptcy certificates upon completing debt counseling before filing for bankruptcy and upon completing a debt education course after filing.
– Only debt counseling agencies approved by the U.S. Trustee Program and debt education courses can issue bankruptcy certificates unless you live in Alabama or North Carolina.
– Debt counseling and debt education services must notify you in advance of any additional fees for the bankruptcy certificate before providing the service.
Source: https://www.thebalancemoney.com/what-is-a-bankruptcy-certificate-5181855
.lwrp .lwrp-list-item .lwrp-list-link .lwrp-list-link-title-text,
.lwrp .lwrp-list-item .lwrp-list-no-posts-message{
}@media screen and (max-width: 480px) {
.lwrp.link-whisper-related-posts{
}
.lwrp .lwrp-title{
}.lwrp .lwrp-description{
}
.lwrp .lwrp-list-multi-container{
flex-direction: column;
}
.lwrp .lwrp-list-multi-container ul.lwrp-list{
margin-top: 0px;
margin-bottom: 0px;
padding-top: 0px;
padding-bottom: 0px;
}
.lwrp .lwrp-list-double,
.lwrp .lwrp-list-triple{
width: 100%;
}
.lwrp .lwrp-list-row-container{
justify-content: initial;
flex-direction: column;
}
.lwrp .lwrp-list-row-container .lwrp-list-item{
width: 100%;
}
.lwrp .lwrp-list-item:not(.lwrp-no-posts-message-item){
}
.lwrp .lwrp-list-item .lwrp-list-link .lwrp-list-link-title-text,
.lwrp .lwrp-list-item .lwrp-list-no-posts-message{
};
}
Leave a Reply