If you are thinking of seeking help from a bankruptcy lawyer for debt relief, one thing the lawyer will talk to you about is credit counseling. Everyone that files for bankruptcy must complete two credit counseling courses, and this is required for a reason. Here are several important things to understand about this requirement in bankruptcy.
The Timing of the Courses
The first thing to understand is that you must follow the timing requirements for these courses when filing for bankruptcy. The first course is something you must take before you sign all the documents for bankruptcy. In other words, before you file for bankruptcy, you must complete the first credit counseling course.
The second course is something you must take after you file but before the bankruptcy court discharges your debts. Most lawyers will recommend taking this course right after the documents are filed with the court. If you fail to take either course, the bankruptcy trustee might dismiss your case, simply for failing to follow the orders of the court.
Why the Court Requires These Classes
Bankruptcy law requires these courses for one main reason: to help people learn how to manage their money. People can get into debt for many reasons, but there are a lot of times this happens simply because people do not know how to budget and manage their money.
By being forced to take these courses, people who file for bankruptcy might be better equipped in the future to stay out of debt. They will learn all kinds of tips for budgeting and managing money, and these tips can help them learn how to handle their finances more effectively and wisely.
What You Can Learn from Them
There are many things you will learn when taking credit counseling, including how to create a budget. A budget is something that helps people know where their money is going, and it offers a way for people to take more control over where they spend their money. Credit counseling courses also teach people how to eliminate frivolous spending habits and how to find ways to save money on normal expenses. By the end of the courses, you should have a much better understanding of why people get in debt and how you can stay out of debt in the future.
Getting into debt is not hard to do, but getting out can be very time-consuming and difficult. If you think that bankruptcy is what you need to get a fresh start, contact a bankruptcy lawyer at law firm like O'Connor Mikita & Davidson LLC to learn more.