In addition to helping you emerge from your heavy financial expenses, the bankruptcy process has steps in place to help you learn money management skills. Whether you are filing for Chapter 7 or Chapter 13 in Texas, you are required to complete a credit counseling course at least 180 days prior to filing for bankruptcy, as well as a debtor education course after submitting your paperwork. A certificate for both courses is needed before your bankruptcy can be ultimately approved and your debts discharged. Once you choose a credit counseling course that has been approved by the Department of Justice’s U.S. Trustee Program, you may learn some useful information that you can use to better your overall situation.
According to the Federal Trade Commission, one of the main focuses of the credit counseling course is to help debtors understand the bankruptcy process. The counseling session will also look at possible alternatives to bankruptcy. It is crucial that you explore all of your options prior to making this important decision. At the end, you will hopefully know whether filing for bankruptcy is the best option.
The debtor education class, which takes place after filing for bankruptcy, is designed to help you organize your budget so that you may avoid accumulating excessive amounts of debt in the future. The course will give you budgeting tips and may help you pinpoint what caused your debt problems in the first place. You will also learn how to reestablish your credit once your bankruptcy has been discharged.
This information should be used for educational purposes and should not be taken as legal advice.