If you’re filing Chapter 7 or Chapter 13 bankruptcy you’re required to complete a debtor education course (sometimes called a financial management course) before you can receive your bankruptcy discharge. However, failure to take the course or to pass it could mean that your bankruptcy case is closed without a discharge. Fortunately, there are a few things you can do to fix the situation if you fail the course.
Contact Course Provider
Under the law, the agency that provided you with the debtor education course must talk to you in person or over the phone if you fail the test or receive less than 70 percent. Once you talk to them, try to reschedule the course to another date. Timing is important.
You Have 60 Days
You have 60 days from the initial date of your 341 meeting to take the debtor education course in a Chapter 7 case and file your certificate of completion with the bankruptcy court. This means that even if your 341 meeting is extended to another date, the clock starts ticking from the first date that was set. In a Chapter 13 case, you must take the court before you make your final plan payment. This is why it’s important that you schedule your debtor education course as soon as possible so that if you fail it you can retake the course and still get your discharge.
Beware of Extra Costs
If you’re unable to pass the debtor education course and your case is closed without a bankruptcy discharge, it will cost you.
- You will need to pay extra to have your bankruptcy case reopened.
- Creditors may resume collections actions against you and seize your assets before you reopen your case.
To avoid the costly consequences of failing your debtor education course you will need to act quickly.