Bankruptcy gives you the chance at a fresh, new start, but it is up to you to ensure you make the most of that start. This means you have to do things different and ensure you protect yourself from unnecessary or excessive debt in the weeks, months, and years to follow. Bankruptcy counseling, which is required before and after bankruptcy, can help you obtain the skills and knowledge you will need to restart your credit and maintain it, long into the future.
Why Do I Need Bankruptcy Debtor Education?
The U.S. Bankruptcy Code mandates that you receive two types of bankruptcy counseling: credit counseling before you file, and debtor education after. Although they sound similar, they are actually quite different. Credit counseling examines your financial situation before bankruptcy to determine if a budget or repayment plan can help you avoid filing. Debtor education, done after you file, is designed to help you focus on building credit and healthy debt management practices. Failure to comply and complete either course could result in a denial of your bankruptcy discharge.
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