People who file for bankruptcy in Texas and across the nation must fill out and submit all of the proper paperwork to the court. In addition to supplying crucial documents, such as a list of assets, debts and expenses, tax returns and a list of creditors, the debtor must complete a mandatory credit counseling course prior to filing for bankruptcy, as well as debtor education course after filing. Before the bankruptcy case can be discharged, the debtor must show a certificate of completion for both courses.
Credit counseling courses are designed to not only educate debtors on the bankruptcy process and the effect it will have on their credit, but also explains all of the debt relief options that are available. This course helps to ensure that people are making the best decision for their particular financial situation. Credit counseling courses aim to provide this essential information and help to change peoples’ habits on how they handle their money.
Once the paperwork has been filed along with the credit counseling course certificate of completion, people are required to take a debtor education course. This course helps people organize a budget, minimizing the chances of ending up in financial turmoil once again. While a discharge in bankruptcy allows people to start again with a clean financial slate, they must know how to handle their money in such a way that they will not return to a place of financial devastation. Debtor education teaches money management, how to rebuild credit and how to deal with an unexpected financial situation.