Yes you do.. As I wrote recently, the new bankruptcy law passed in 2005 requires a person to take a Credit Counseling class before filing bankruptcy. In addition to this Credit Counseling class, a person filing bankruptcy also must take a second class called the Personal Financial Management class. However, this second class doesn’t need to be taken until after the bankruptcy case has been filed.
There are three main stated objectives of the Personal Financial Management class:
- To help you understand the benefits of creating short-term and long-term financial goals,
- To teach you how to create a budget, and
- To teach you how to balance a checkbook and reconcile bank statements.
The stated purpose of this class is to help you become financially literate and avoid another bankruptcy.
One of the services that I provide my clients is assistance in setting up both the Credit Counseling class and the Personal Financial Management class. You can take the Personal Financial Management class in person, by telephone or on the Internet. The cost is approximately $20 per person.
Just like in the Credit Counseling class, you will receive a Certificate of Completion once you have successfully completed the Personal Financial Management class too. In a Chapter 7 case, the Certificate of Completion must be filed with the Court no later than 45 days after the date first set for the Meeting of Creditors. In a Chapter 13 case, the Certificate of Completion must be filed with the Court prior to the last payment being made to the Chapter 13 Trustee. This is important because if you do not complete this second course after filing for bankruptcy, you will not receive a bankruptcy discharge which is generally the reason a person files bankruptcy to begin with.
You may be excused from taking the personal financial management course if you meet one of the following 3 conditions:
- incapacity where the person is so impaired by reason of mental illness or deficiency that the individual is incapable of making rational decisions,
- disability where the person is so physically impaired that the individual is unable, after reasonable effort, to participate in an in-person, telephone, or Internet briefing session, and
- active military duty in a military combat zone.
If you’re struggling with debt problems and would like to know more about how bankruptcy may be able to help you, contact me today to schedule a FREE initial consultation. Just fill out the Contact Dan form on the far right side of the page and click the Submit button and I’ll get back with you as quickly as I can. I would count it a privilege to be able to visit with you in a relaxed and confidential environment where I’ll answer all of your questions in plain English and give you the straight scoop on the pros and cons of bankruptcy as related to your specific situation.
