Unfortunately, there is a misconception that bankruptcy is a straightforward process in which you declare, have your debts erased, and continue on with your life. In reality, this is a complex process with many deadlines and requirements in order to obtain relief. One of the most overlooked aspects of this process is the completion of credit counseling courses. If you’re interested in filing, understanding the function of these courses and how to fulfill the requirements is critical. You will also learn the importance of connecting with a Newburgh bankruptcy lawyer for legal guidance when you need relief.
What Are Credit Counseling Courses?
As bankruptcy is a complicated process, it’s imperative to understand the different aspects of this process. Generally, when you decide that you want to file for bankruptcy, you are unable to do so until you have completed the required credit counseling courses. These courses must be completed within 180 days of filing for bankruptcy to continue the filing.
These courses are important as they provide those interested in filing for bankruptcy with other alternative options to manage their debt. This provides some potential filers with the ability to manage their finances without having to file for bankruptcy by exhausting all other options. Typically, bankruptcy is considered a last resort for many in debt due to the impact it can have on your credit score.
It’s imperative to understand that just because you must attend this course does not mean you must follow the advice provided to you by the credit counselor. You must, however, submit the alternative plans discussed during the course when filing for bankruptcy.
Is This Different From Debtor Education?
While you must take a credit counseling course before your bankruptcy filing, there is another type of educational course you must complete before your case can officially close. This is the debtor education course. Unlike credit counseling which helps examine your debt relief options, this course focuses on building strong financial habits to help you succeed after you have gone through the bankruptcy process.
It’s important to understand that just as you must complete credit counseling before your filing, you must complete the debtor education class before your eligible debts can be discharged and your case is officially closed. Failure to complete the course means you will not receive a discharge and will still be legally liable for the outstanding debt in your name.
Bankruptcy is undoubtedly a complicated and often overwhelming process. Unfortunately, many underestimate how complicated this process is and attempt to navigate it without legal guidance. This can have unfavorable outcomes, as you may make errors that not only cause unnecessary delays but could also result in your case being dismissed, leaving you without any relief. As such, working with an experienced attorney is imperative in these matters. At the Law Offices of Michael D. Pinsky, we understand how important debt relief is to you, which is why we will do everything in our power to help guide you through this process.
