Confusion About Debtor Education

A few people who called me last week seeking information about filing bankruptcy were confused about the debtor education requirements under the new bankruptcy law. There are two separate debtor education requirements under the new law. First, you must take a consumer education class prior to filing bankruptcy. The course provider will issue you a certificate of completion, and certification must be filing with your initial petition. Then, there is a second debtor education requirement. During your bankruptcy case you must also take a course in financial management. Filing a certificate of completing the financial management course is a prerequisite to a bankruptcy discharge of all your debts.

Attorneys fees typically do not include your costs of debtor education. The education classes are a separate costs you must pay to file bankruptcy. The good news is that the costs of debtor education will be regulated by the United States Trustee office, and the cost of each class should be under $100. Also, the new law makes it very convenient to comply with education requirements. Approved courses will be provided on the internet and even by telephone for people without internet access. Your bankruptcy attorney will provide you specific information about costs and availability of qualifying debtor education classes in your area.

posted by Jonathan Alper, asset protection and bankruptcy lawyer, Orlando, Florida