Everything You Need to Know About Earning Bankruptcy Certificates

Submitted by Rachel R on Fri, 04/26/2013 - 3:24pm

Everything You Need to Know About Earning Bankruptcy Certificates

 

Image Source: creditnews.no 

If you want to file for either Chapter 7 or Chapter 13 bankruptcy protection in North Carolina, it’s important to understand that the bankruptcy laws have changed and you now must earn two bankruptcy certificates before your debts can be discharged.

Why Do You Need the Certificates?

Bankruptcy certificates are now a requirement under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. They are a simple way to help make sure you receive the proper education about the bankruptcy process.

The Bankruptcy Abuse Prevention and Consumer Protection Act was officially signed into law on April 20, 2005. It was the largest change to bankruptcy law since its origination in 1978. The major purpose of the legislation was to prevent people from filing fraudulent bankruptcies.

As of 2013, if you plan to file for a Chapter 7 or Chapter 13 bankruptcy, you need to take the following courses and get a certificate of completion:

·         Credit Counseling Course (must be taken within 180 days before filing for bankruptcy)

·         Debtor Education Course (must be taken after filing for bankruptcy protection)

   

Image Source: infographicjournal.com

What You Need to Know About the Courses

When you do some research about these courses, you’ll notice that most states require the classes to be approved by the U.S. Trustee Program. This is not true for North Carolina bankruptcy law.

North Carolina does not fall under the U.S. Trustee Program and that means that you must find bankruptcy education courses that are approved by bankruptcy administrators

Bankruptcy administrators approve and keep a current list of approved credit counseling agencies and debtor education providers in their districts. You can access that information here. When you are looking to find the most up-to-date list of approved bankruptcy education providers in North Carolina, simply contact the bankruptcy administrator in the district you live in.

For your convenience, many agencies offer both the pre-filing credit counseling course and the debtor education course. If you choose one of the agencies approved to provide both, you should be aware that the courses cannot be taken at the same time. You still have to take the credit counseling course before filing for bankruptcy protection and the debtor education course after filing for bankruptcy.

Image Source: loveinfographics.com 

The Credit Counseling Course

So, what can you expect to learn during your credit counseling course? Your instructor will cover the following information with you:

·         A thorough review of your income, bills, assets, and liabilities

·         If bankruptcy is the best solution for your unique situation

·         Develop a smart spending plan, a detailed plan of action to get your finances back on track and both short/long term financial goals

This course can be taken from the comfort of your own home, which makes it extremely accommodating. Choose to complete the course online or over the telephone.

Once you complete the course, you will receive a certification of participation from the agency. You will then provide your local North Carolina bankruptcy attorney with the certificate and proceed with the filing process.

The Bankruptcy Education Course

Once you obtain the credit counseling certificate, it’s time to get a bankruptcy education certificate. Bankruptcy education programs generally cover the following topics:

·         Money management

·         Creating a smart budget

·         Sticking to your budget

·         Using credit properly

·         Starting a savings account

·         Re-establishing your credit

This course can also be taken online or over the phone. Once completed, you will be issued a certificate of completion that will allow the bankruptcy discharge process to proceed.

In order to be successful when filing for bankruptcy protection in North Carolina, you must obtain both bankruptcy certificates from approved agencies. So, if you are thinking about filing Chapter 7 or Chapter 13 bankruptcy, speak with a trusted NC bankruptcy lawyer today and take the first steps toward a new financial beginning.

Dedicated to helping residents of North Carolina find the best solutions to their debt problems. Don’t waste another day worrying about your debt. Call +1-919-646-2654 today to schedule a free initial consultation to discuss your bankruptcy options.

Debts Hurt! Got debt? Need help? Get started below!

Serving North Carolina

  • Charlotte
  • Fayetteville
  • Durham
  • Wilson
  • Greensboro
  • South Raleigh (Garner)
  • Southport (Phone Consults)
  • Wilmington (Phone Consults)

North Raleigh

6616 Six Forks Rd Suite 203 Raleigh, NC 27615 North Carolina

Tel: (919) 847-9750

North Raleigh

Charlotte

7400 Carmel Executive Park Dr Suite 105 (In affiliation with Jack G. Lezman, PLLC) Charlotte, NC 28226 North Carolina

Tel: (704) 318-2702

Charlotte

Fayetteville

2711 Breezewood Ave. Fayetteville, NC 28303 North Carolina

Tel: (910) 323-2972

Fayetteville

Durham

1738 Hillandale Road Suite D Durham, NC 27705 North Carolina

Tel: (919) 286-1695

Durham

Wilson

2215 Nash St. NW Wilson, NC 27896 North Carolina

Tel: (252) 234-9194

Wilson

Greensboro

600 Green Valley Road Suite 210 Greensboro, NC 27408 North Carolina

Tel: (336) 542-5993

Greensboro

South Raleigh (Garner)

143 Highway 70 Garner, NC 27529 North Carolina

Tel: (919) 747-4400

South Raleigh (Garner)

Southport (Phone Consults)

4320 Southport Supply Road SE Suite 300 Southport, NC 28461 North Carolina

Tel: (910) 218-8682

Southport (Phone Consults)

Wilmington (Phone Consults)

4320 Southport Supply Road SE Suite 300 Southport, NC 28461 North Carolina

Tel: (910) 447-2987

Wilmington (Phone Consults)