Credit Counseling Requirement and Financial Management Course for Filing and Discharge
- Sheereen E. Middleton, Esq.
- May 5
- 2 min read
Introduction
When filing for bankruptcy, there are two mandatory courses every debtor must complete: credit counseling before filing and a financial management (debtor education) course after filing. These requirements were added under the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) and apply to both Chapter 7 and Chapter 13 cases.
Step 1: Credit Counseling Before Filing
Timing: Must be completed within 180 days before filing your case.
Purpose: Helps determine whether bankruptcy is the right choice or if alternatives like repayment plans are possible.
Format: Offered online, by phone, or in person through U.S. Trustee-approved agencies.
Certificate of Completion: Must be filed with your bankruptcy petition. Without it, your case can be dismissed.
Step 2: Financial Management Course (Debtor Education) After Filing
Timing: Must be completed after filing but before discharge.
In Chapter 7, usually within 60 days after the 341 meeting of creditors.
In Chapter 13, usually before the court grants your discharge at the end of your repayment plan.
Purpose: Teaches financial skills such as budgeting, credit rebuilding, and money management to help avoid future financial distress.
Certificate of Completion: Must be filed before the court can issue your discharge.
What Happens If You Don’t Complete the Courses?
Case Dismissal (Pre-Filing Credit Counseling): If you file without the credit counseling certificate, your case may be dismissed immediately.
No Discharge (Post-Filing Financial Management): If you don’t complete the financial management course, you won’t receive a discharge — meaning your debts remain legally enforceable.
Costs and Accessibility
Cost Range: Typically $20–$50 per course.
Waivers: Low-income debtors can often request a fee waiver or reduced fee.
Convenience: Many providers offer both courses online for flexibility.
Key Tips
✅ Confirm your provider is U.S. Trustee-approved.
✅ Complete courses as early as possible to avoid delays.
✅ Keep a copy of your completion certificates for your records.
Conclusion
The credit counseling and financial management courses are not just legal requirements — they’re opportunities to evaluate your financial situation, gain valuable skills, and ensure a smoother transition to a debt-free future. By completing both courses on time, you protect your case and secure the fresh start bankruptcy was designed to provide.
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