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Credit Counseling Class
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Before Filing Your Case - Credit Counseling Class
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If you've looked into filing bankruptcy, you may be aware that before you can file the case you must first take a mandatory credit counseling class and provide the certificate of completion to your lawyer.
What is this class?
It's not really a class so much as it is a data entry session where you go to a website and type in information about who you are, how much (or little!) money you earn, what your monthly living expenses are, and what debts you need to put into bankruptcy. After you've entered all this information, you typically have to call in and talk to a live "counselor" for a few minutes to verify the information you typed in. After that, the provider of the class will email out to you a certificate of completion. Your lawyer cannot file your case without that certificate.
I personally feel this is a waste of time and money, but it is required before you can file bankruptcy. Congress implemented this new requirement during the 2005 changes to bankruptcy law as a means of trying to "screen out" people who may not really need to file. As it turns out, less than 5% of the people who take this "class" ever choose not to file. In other words, 95% of people who take the online session end up filing bankruptcy anyway, so it's not much of screening process. The truth is that very few people take bankruptcy as an "easy out." Most people who file bankruptcy are in terrible financial straits and need help fast!
Where do you go to take the class?
I recommend http://www.personalfinancialeducation.com/ to my clients because it's the cheapest one I've found. They charge $30 whether you are a single person or married couple filing jointly. Most other places charge anywhere from $50 to $75.
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After Filing Your Case - Financial Management Class
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After your case is filed, you must take another, separate online education session called a Financial Management Class.
What is this class?
This session is longer, more comprehensive, and potentially more rewarding. You watch some online videos and take a few very simple tests (mainly to prove you are watching). Some of my clients have found this class helpful because it teaches budgeting and other rudimentary financial survival techniques. It usually takes at least two hours so set aside some time and pop some corn! You must take this class and provide a certificate of completion to your lawyer to file with the court or your case will close without a discharge--a horrible result!
Where do you go to take the class?
I recommend http://www.50-30-20.com/ to my clients because, again, it's the cheapest I can find at $14.95 per person. After you take the class, be sure to provide your certificate of completion to your lawyer so it can be timely filed.
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