The idea of a debt counseling course sounds time-consuming and onerous. But these types of courses are actually helpful - and they don’t take a lot of time, says bankruptcy attorney Benjamin Ginter, who runs the Law Offices of Benjamin J. Ginter in Cranford, New Jersey. Here, he explains what they’re all about.
Under the law that went into effect in 2005, anybody filing for bankruptcy has to complete both a pre- and post-filing debt counseling course, which is designed to teach people about managing money better in the hopes they won’t get into debt again. Courses take 55 minutes to a little over an hour. The course is conducted in two steps:
- Pre-Filing Course: The pre-filing course is designed expressly for people who are debtors. They will speak to a customer representative of the company which provides the courses and go over the type of debt involved, what the debtor does for a living, how much they make and how they budget their money on a day-to-day basis. The idea is to get an idea of the financial picture of the debtor. After they complete the course, they are issued a certificate of completion, which goes either to the debtor themselves or to their attorney, who makes sure that the certificate is filed with the bankruptcy court.
- Post-Filing Course: There is also a post filing course and this is usually competed after the debtors attend their trustee meeting, which is held about a month after filing. They will usually use the same company to conduct the course as they used when they took the pre-filing course. This course basically teaches the debtors how to manage their finances, and how to use their money properly and correctly so they do not get into financial difficulties in the future. When they complete this, which is done 45 days within the trustee meeting, another certificate is then issued and filed with the court to show that the debtor has completed the course.
