The two mandatory courses in bankruptcy
Federal law requires two financial education courses in every consumer bankruptcy case. Understanding these requirements -- and their costs -- is part of planning for an affordable bankruptcy.
Pre-filing credit counseling
Under 11 U.S.C. Section 109(h), you must complete a credit counseling course from an approved agency within 180 days before filing. This course reviews your financial situation and explores alternatives to bankruptcy.
- Typical cost: $10-50 (fee waivers available for low-income filers)
- Duration: about 60-90 minutes
- Available online, by phone, or in person
- Must use a DOJ-approved agency: DOJ approved list
Post-filing debtor education
Under 11 U.S.C. Section 727(a)(11) (Chapter 7) or Section 1328(g) (Chapter 13), you must complete a financial management course after filing. Failure to complete this course can result in denial of discharge.
- Typical cost: $10-50 (fee waivers available)
- Duration: about 2 hours
- Must be completed before discharge
- Must use a DOJ-approved provider (can be a different agency than pre-filing)
Fee waivers: Both courses offer fee waivers for individuals who cannot pay. Ask the agency about their waiver policy before signing up. The DOJ requires approved agencies to provide services regardless of ability to pay.
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