Bankruptcy courses · Beverly Hills
Credit Counseling and Debtor Education Courses
Credit counseling and debtor education are two short courses required in every personal bankruptcy. You take credit counseling within 180 days before filing and debtor education after filing, and each typically costs $50 or less. Call (310) 362-9071 and we will tell you when to take each one.
- Course 1: within 180 days before filing
- Course 2: after filing, before discharge
- Online or by phone with an approved provider
At a glance
The two courses side by side
The two courses have different names, timing and goals. Both must come from a provider approved by the U.S. Trustee Program.
| Course 1: Credit counseling | Course 2: Debtor education | |
|---|---|---|
| When | Within 180 days before you file | After you file |
| What it covers | Your budget and whether you have options other than bankruptcy | Managing money, budgeting and using credit after bankruptcy |
| Why it matters | Without it, you generally cannot be a debtor at all | Without it, you generally do not get a discharge |
| Chapter 7 deadline | Before filing | Certificate due within 60 days after the first date set for the 341 meeting |
| Chapter 13 deadline | Before filing | Certificate due by the date of your last plan payment |
Course 1: credit counseling before you file
Credit counseling must be done within 180 days before you file. Federal law (11 U.S.C. 109(h)) makes it a condition of filing. If you file without it, your case can be dismissed.
The briefing can be done online or by phone. It is usually short. At the end, the provider gives you a certificate. We file that certificate with your petition.
Timing matters. If you took the course more than 180 days ago, you need to take it again. In an emergency filing, we will check whether your certificate is still good before we file. Married couples filing together each need a certificate. See Chapter 7 for married couples.
Course 2: debtor education after you file
Debtor education is taken after you file. It is also called the financial management course. It covers budgeting and using credit wisely after your case.
In Chapter 7, the certificate is due within 60 days after the first date set for your 341 meeting of creditors. Most people finish it soon after filing. See the Chapter 7 timeline for how it fits.
In Chapter 13, the certificate is due no later than the date of your last plan payment. Many people take it early so they do not forget it years later.
What the courses cost and how to find a provider
The courses typically cost $50 or less each. The U.S. Trustee Program presumes fees of $50 or less are reasonable. A provider that charges more needs the program's approval.
If your household income is less than 150% of the federal poverty guideline, the provider is expected to waive or lower its fee. Ask the provider before you start.
Use only an approved provider. The U.S. Trustee Program keeps the official list on justice.gov/ust, sorted by state and district. A course from a provider not on the list does not count. These course costs are separate from the court's fees. See filing fees and waivers and what bankruptcy costs.
What happens if you skip the second course
If you skip the second course, your case can be closed without a discharge. That means you went through bankruptcy, but your debts are not wiped out. Creditors can start collecting again.
The fix is to take the course and ask the court to reopen the case so the certificate can be filed. That takes time and can involve a court fee. Read about how to reopen a bankruptcy case.
- Taking course 2 before filing. It does not count. It must be taken after you file.
- Using the wrong provider. Check the U.S. Trustee list first.
- Letting course 1 expire. A certificate older than 180 days on filing day does not count.
- Assuming the provider files it. Some providers file the certificate for you and some do not. Confirm it was filed.
What it costs
- Chapter 7: flat attorney fee from $1,200, plus the $338 court filing fee
- Chapter 13: attorney fee quoted in writing, and part of it can be paid through the plan
- Payment plans are available, and the first consultation is free
More on what bankruptcy costs
- What Bankruptcy Costs in Beverly Hills
- What Chapter 7 Costs: Full Breakdown
- What Chapter 13 Costs and How the Plan Pays the Fee
- Filing Fees, Fee Waivers and Installment Plans
- Credit Counseling and Debtor Education Courses
Bankruptcy course questions
Do I have to take credit counseling before bankruptcy?
Yes, you have to take credit counseling within 180 days before filing bankruptcy. Federal law makes it a condition of filing, with narrow exceptions.
How much do the bankruptcy courses cost?
The bankruptcy courses typically cost $50 or less each. Providers must waive or lower the fee for many people with household income under 150% of the poverty guideline.
Can I take the courses online?
Yes, you can take the courses online, and many providers also offer them by phone. Pick a provider from the U.S. Trustee Program's approved list.
When do I take the debtor education course?
You take the debtor education course after you file. In Chapter 7, the certificate is due within 60 days after the first date set for the 341 meeting. In Chapter 13, it is due by your last plan payment.
What if I forget the second course?
If you forget the second course, your case can close without a discharge. You can usually fix it by taking the course and reopening the case, but that adds time and cost.
Free consultation
Get the timing right from the start
Call (310) 362-9071 or send the form. We will tell you when to take each course.
Law Offices of John Asuncion9454 Wilshire Blvd., Penthouse Floor
Beverly Hills, CA 90212
(310) 362-9071
Monday to Friday, 9 a.m. to 6 p.m.