What is Bankruptcy?

• Bankruptcy is a legal process that allows debtors to clear or reduce outstanding debt. The process gives debtors a chance to rebuild positive credit. Filing bankruptcy requires a long and detailed petition listing your income, debt, family situation and monthly expenses. While bankruptcy can allow you a fresh start, there are serious negative consequences that should be discussed with a bankruptcy attorney to help you decide if bankruptcy is right for your situation.
  
  

Class 1

• The first required class must be completed before you can submit your bankruptcy petition to the court. The class is, roughly, 60 to 90 minutes long and can be taken in person, online or via a telephone call. The company must be approved by the U.S. Trustee's office for the court to accept the certificate. According to the Federal Trade Commission, this course is approximately $50 depending on the area of the country you are in. This class focuses on seeing if there are any other options to bankruptcy.
  
  

Class 2

• The second class must be taken after you file your petition with the bankruptcy court but before your discharge. You must take the class and submit your certificate to the court to have the judge grant the bankruptcy discharge. Failure to complete the course could result in the dismissal of your bankruptcy case. The Trustee assigned to your case will give you the date of the expected discharge. To prevent any issues, submit your certificate as early as possible so you have time to correct any errors that may arise. This course will take approximately two hours and can also be taken in person, online or via the telephone. According to the Federal Trade Commission, this class costs roughly $50 to $100 and focuses on giving you an understanding of how to manage your finances post-bankruptcy.
  
  

Approved Agencies

• Visit justice.gov and select your state from the drop down bar (see the resources section of this article). A list of approved credit counseling agencies in your state will appear. All approved agencies must waive the fee for the course if you are unable to afford the cost. Contact the agency to request the waiver. When taking the course online or in person, you should get your certification immediately. The company may mail, email or fax your certificate if you take the courses over the telephone. Make sure the company offers same day certificates if you need the certificate quickly.