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Understanding credit education in a Chapter 7 bankruptcy

It's possible for anyone to fall into a state of financial distress. Not many individuals have the flexibility to handle unexpected expenses, a medical crisis or a job loss. When these unfortunate situations occur, individuals may have to rely on credit in order to make their ends meet. This can quickly lead to a state of financial disarray. When this occurs, individuals can be left suffering with serious debt. In these cases, many may turn to Chapter 7 bankruptcy in order to get a fresh financial start.

Hamilton residents considering Chapter 7 bankruptcy, however, should understand that credit education is an important and mandatory part of the Chapter 7 bankruptcy process. The courts have an interest in making sure people understand how to make different financial decisions in the future.

According to the United States Courts, there are two types of credit education that are mandatory in order to file for a Chapter 7 bankruptcy. First, there is credit counseling. Credit counseling must take place before a person files for Chapter 7 bankruptcy. It must be done through an approved credit counseling agency.

In addition to credit counseling, pre-discharge debtor education is also mandatory as part of the Chapter 7 bankruptcy process. Again, debtor education classes must be approved by the U.S. Trustee Program and must issue a certificate of completion. This debtor education cannot be taken at the same time as the credit counseling.

Understanding and fulfilling these debtor education requirements is an important part of the bankruptcy process. Without fulfilling these requirements, individuals may put their discharge at risk. There are many legal steps that need to be taken throughout the bankruptcy process and individuals need to know whether not they have to complete them. An attorney can help individuals navigate this process to ensure that they receive the debt relief they need.

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Kenneth C. Rannick, P.C.
4416 Brainerd Road
Chattanooga, TN 37411

Phone: 423-954-7180
Phone: 423-624-4002
Fax: 423-624-0509
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