How Long Is the Debtor Education Course?
Get clear answers on the required debtor education course for bankruptcy: its purpose, typical duration, and steps for completion.
Navigating personal bankruptcy often involves specific requirements designed to help individuals achieve financial stability. Among these mandates is the debtor education course, a structured program intended to equip filers with essential money management skills. This course serves as a foundational step towards rebuilding financial health following a bankruptcy discharge.
The Debtor Education Course Requirement
The debtor education course, also referred to as a personal financial management instruction course, is a mandatory component for most individuals seeking to discharge debts through Chapter 7 or Chapter 13 bankruptcy. This requirement aims to provide debtors with the knowledge and tools necessary to prevent future financial distress. It functions as a post-filing obligation, meaning it must be completed after the bankruptcy petition has been submitted to the court.
This course is distinct from the pre-filing credit counseling session, which must be completed before a bankruptcy case is initiated. While credit counseling helps evaluate debt relief options before filing, the debtor education course focuses on financial management for the future. Individuals must complete the course and obtain the certificate of completion before they can receive their bankruptcy discharge.
Course Content and Expected Timeframe
The debtor education course typically requires a minimum of two hours (120 minutes) to complete, as mandated by bankruptcy law. The course content covers a range of practical financial topics.
Subjects include:
Budgeting and expense tracking
Responsible use of credit
Understanding interest rates
Avoiding predatory lending practices
Financial goal setting
Maintaining financial records
Strategies for coping with unexpected financial challenges
These courses are widely available in various formats, including online, by phone, or in person, with online options often accessible 24 hours a day.
Selecting a Course Provider and Certification
To fulfill the debtor education requirement, individuals must select a course provider approved by the U.S. Trustee Program. The official website of the U.S. Trustee Program (justice.gov/ust) provides a comprehensive list of these approved providers. When choosing a provider, it is advisable to consider factors such as course fees, which typically range from $7.95 to $50 per household, and the availability of the course in different languages or formats.
Some providers may offer fee waivers or reduced rates for individuals whose household income falls below 150 percent of the poverty level. After successful completion of the course, providers are obligated to issue a certificate of completion. This certificate is usually provided within one to three business days, though some providers offer immediate electronic access, and can be sent via email, mail, or fax to the debtor or their attorney.
Filing the Certificate of Completion
Upon receiving the certificate of completion for the debtor education course, the next step involves submitting it to the bankruptcy court. This filing must occur before the bankruptcy discharge can be granted. Depending on the course provider and the specific court’s rules, the certificate may be filed directly by the provider, by the debtor’s attorney, or by the debtor themselves.
There are specific deadlines for filing the certificate, which vary based on the bankruptcy chapter. For Chapter 7 cases, the certificate must typically be filed within 60 days after the date set for the Section 341 meeting of creditors. In Chapter 13 cases, it must be filed no later than the date of the last plan payment or when a motion for discharge is submitted. Failure to timely file this certificate can result in the bankruptcy case being closed without a discharge.