Pre-discharge counseling is a financial education course taken by a debtor before his or her debts will be discharged by the Federal Bankruptcy Court.
This is a requirement of bankruptcy law. It is the same with a pre-discharge counseling class. In other words, you will be required to take a pre-filing class (before you file, of course) and pre-discharged class before the court grants the final discharge. Both classes require certification and the every debtors must show prove of the certificates when appropiate.
It is very important to have this counseling and financial training before the discharge of the Chapter 7 or Chapter 13 bankruptcies. In fact, if a debtor fails to file the certificate within the time requirements, the court will dimiss the petition. A debtor will have to file the petition again (subject to new attorneys fees and filing cost).
These certification cover the following financial important matters:
-Creating a budget you can live with;
-Understanding your credit report and score;
-Using credit wisely;
-Obtaining credit reports;
-Improving credit reports and credit scores;
-Learning on how to avoid becoming a victim of identity theft;
-Reducing expenses and increasing income;
-Evaluating insurance needs;
-Proper handling of a checking account;
-Creating a personal budget;
-Establishing financial goals;
-Rebuilding finances after bankruptcy;
-Developing and following a budget
-Understanding and using credit;
-Setting achievable financial goals;
-Calculating net worth;
-Finding hidden ways to save money;
-Learning the steps which are necessary to reenter the world of credit;
-Creating a livable budget;
-Building savings plan; and a lot more
The bankruptcy code now requires the debtors to complete a pre-discharge counseling with trusted and approved agency. You will be learning a lot of things about the topics mentioned above in the said agency (we can make a few suggestions).
In order for this discharge be given and granted by the court, one must accomplish and fulfill first a pre-discharge counseling. There is no exception to this requirement.
The purpose and aim of this counseling is for you to learn and build a long-term financial stability. In line with this, there are many online services that would cater and conduct webinar, online workshop and training pertaining to financial education.
Information about housing counseling and other location are also provided online. You can access the internet and have a pre-discharge counseling online at home. You can also call an 800 number and do th conseing over the telephone. There are several companies, but remember, they must be approved. We will guide you where to go at the time of our initial interview.
The counseling also helps you calm down and relax after a filing the bankruptcy. So if you have some questions, inquiries, and clarifications regarding pre-discharge counseling and the things it comprises and other areas it covers, please contact our office or we can addresses them when at the initial interview.