The Financial Management course is the final step you must take to get your bankruptcy discharge. Congress in its infinite, politically motivated wisdom decided that you should take two courses. One to qualify to file for bankruptcy, and the other to qualify for your bankruptcy discharge. Each is a requirement in chapter 7 as well as chapter 13
The two courses are:
- Prepetition credit counseling
- Pre-discharge financial management
In a previous post I characterized the pre-petition class as a joke. A feel good measure by some congressman which just adds to the money you have to pay out to file for bankruptcy. Just what you need, a new reason to waste money you don’t have.
This course is a much different story. When the law changed in 2005, I took this class myself when I evaluated different providers. This is the class we all should have had as a required course in high school. If you didn’t get it there, then they should have required it in college.
Unlike the first pre-petition credit counseling, the financial management does not require you to enter any personal information. There is no telephone option for this course. It is online or in person. You complete a series of topic bases modules. There is a multiple choice test at the end of each module, and a complete test at the end. Very informative. Very easy.
Balena Law Firm has reviewed the course providers to find the best deal for your money. Like the pre-petition credit counseling class I recommend cricketdebt.com. When you paid me your fees and costs, it included the expense of this course as well. I gave you a firm code. Log on, enter the code, I will be billed, and I will receive a completion certificate. You just do the course.
You can still use the computer behind the screen in our waiting room for the financial management class. If you are not a client of Balena Law Firm, but still need the certificate call me to schedule a time. I will have to charge you the cost of the class, $24.00 plus $50 for time on the computer. Total $74.00.
Hot Financial Management tip:
Just like the pre-petition credit counseling class, if you filed a joint bankruptcy case, both can take the financial management class at the same time. Some providers waste your time by making each do it separately. Not cricketdebt.com.
- Both should be at the computer
- One of you enters sign up info.
- Add the spouse’s name and SSN
- When finished, the spouse calls Cricket at 866-719-0400 to report completion of the course and that each needs a certificate.
- Cricket sends you and Balena Law Firm two certificates
Downside of Not Doing Financial Management Course
In the eyes of government we are all children. So, they included a spanking in the law if you do not complete the course in time. What time frame? Anytime after you file for bankruptcy up to 45 days after your meeting of creditors. If you don’t do it then your case is closed without discharge.
So what? To get your discharge you need to complete the course. I then file a motion to reopen your bankruptcy case, attend a hearing (waste of time) and the case is reopened and the discharge granted.
What’s so bad about that? The filing fee for the motion is $260, and the attorney fee for the motion and hearing is $500. That’s a total of $760 for something you could have avoided by doing what we instructed. Do the course and do it on schedule.
Photo by iStockPhoto.