Many people still think of bankruptcy as an easy way out of debt. These individuals don't realize that there are specific educational requirements that must be met throughout the bankruptcy case. People who don't go through the appropriate sessions won't be able to have their bankruptcy discharged by the court.
Before you even file, you have to complete credit counseling. You will work with a counselor who will review your finances and determine what options you have for handling the debts. The purpose of this is to determine if there is a way that you can repay your debts that doesn't involve having to file for bankruptcy. The agency that you use for credit counseling must be approved by the bankruptcy court, so you must verify this before your first session.
Before your bankruptcy is discharged, you have to complete a debtor education program. The goal of this is to help you learn how to manage your money so that you don't find yourself in the same position with your finances again. You will learn how to budget and how to handle financial emergencies. You will also learn how to use credit wisely and how to deal with other financial matters. The course you take and the place you take it must be approved.
These are only the educational requirements for bankruptcy. There are other things that you need to consider before you file for Chapter 13 bankruptcy, including the fees and repayment plan you will have to follow. Make sure that you fully understand the process before you file your case and get started on the road to financial freedom.
Source: FindLaw, "Chapter 13: Credit Counseling and Debtor Education Information," accessed Oct. 01, 2017