Educational Courses Requirement

If you are thinking of filing a petition for bankruptcy under Chapter 7 of the Bankruptcy Law, you will be required to take two educational courses. One course is taken PRIOR to the filing of the bankruptcy petition, and the second AFTER the petition is filed.

The first course is about budgeting and learning how much income you have coming in, what monthly expenses you have, and how much you owe. The second course is more about how to maintain your credit, how credit card companies operate their business and how it affects your account(s). You will not receive a discharge in bankruptcy if you took the first course but failed to take the second. If your case is dismissed for failure to take the second course, you would have to make a motion to re-open the case and pay fees to the court.

The courses can be taken online or by telephone. Their cost depends on whether you are doing them online or over the telephone. By telephone they cost a little more. These courses are useful, you can learn a lot about maintaining good credit from taking them. After you take each course, a Certificate of Completion is issued by the school offering it and these certificates have to be filed with the court.

Some debtors are unable to take these courses due to some incapacity, or because counseling is not available in their ares of residence.

Deciding Whether to Seek Bankruptcy Protection

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Many people ask me whether they should try to avoid bankruptcy
at all costs. "But of course," I tell them, "if you have money to pay
your creditors you should pay them. After all, you promised to do
that when you asked for credit."

When you are in dire financial circumstances you cannot ask
yourself whether you should avoid bankruptcy at all costs. Instead,
you should ask yourself: "Based on my financial resources what
choices do I have?" That is a question you can work with in order to
determine whether you should file for bankruptcy.

The first thing you have to do when you are in financial difficulties
is to know your circumstances. Sit down at the kitchen table and
make a list of all your monthly expenses; rent, utilities, food,
transportation, etc., after you have accounted for all of your monthly
expenses, add them up and look at the total: do your expenses
exceed your income? Is your situation likely to change for the
better any time soon?

If you are uncertain, maybe you should consult a financial planner
or a bankruptcy attorney. Sometimes we need someone to help us
clarify an issue.

Thnking About Filing for Bakruptcy

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If you are reading this blog, you are probably exploring ways to improve your financial situation. Many people today have lost one of their jobs, or the one job they had. Others have seen their full time jobs reduced to part time employment. Some have experienced health problems and, not having health insurance coverage, they have spent their savings on medical treatment. There are many different ways someone can experience financial distress.

Misery loves company, they say. But it is hard to find consolation in being one among many who are unable to pay their debts and are having trouble covering their basic necessities. Like most people, you want to make your payments on time, and you do not want to deal with collection agencies on the phone.

If you are in a dire financial situation, you could probably find relief by filing a petition for bankruptcy. Individual consumers often seek protection under Chapter 7 of the Bankruptcy Law. To qualify under Chapter 7, your income must be insufficient to pay for your monthly expenses. There are many other issues that require consideration and the particular circumstances of your case will determine whether or not bankruptcy is the answer to your problem.