If you intend to file for any type of bankruptcy, you will have to complete a few courses in credit counseling before you can actually use bankruptcy as a way out of debt. In fact, there are two courses you must take, and there are some good reasons why courts require people to take these courses when filing for bankruptcy. If you are planning on filing for bankruptcy, here are several things to know about the courses you must take and the purpose of these courses.
When you must take them
There are two courses that you are required to take when filing for bankruptcy, and you will have to make sure that you take the first one within six months of filing. In other words, you have 180 days before you file to take this course. If you take it and do not file within this amount of time, you would have to retake the course. You are not required to take the second one until after submitting your documents to the bankruptcy court. For this one, you must prove that you completed it before your case ends.
How you can take them
There are two main ways to take these required courses, and the easiest option is online. There are approved credit counseling agencies you can choose from for these courses online, and you will do everything online at your own convenience. You must complete all the requirements of each course in order to receive a certificate of completion, and the agency you use for the courses will also email a certificate of completion directly to your lawyer. These certificates become part of your bankruptcy case and are necessary.
The purpose of these courses
Bankruptcy law requires that you take these courses for a number of reasons, especially the following two. The first reason is to offer alternatives to people who are considering bankruptcy. Through these courses, you can learn about other options you have for finding relief from debt, and you could even decide to use a different option if you think one would be better for you. The second reason is to teach you better skills in budgeting and money management, and you can use these skills in the future to avoid falling into debt again.
Taking a credit counseling course is a great way to learn more about personal finance and budgeting, and it can help you develop better strategies you can use in the future for these things. If you have questions about bankruptcy, you should call or visit a bankruptcy service.