16 Jun Beware Of Letters (Ads) For Bankruptcy Financial Management Class
Some companies are sending letters to bankruptcy debtors for the 2nd bankruptcy course that must be taken in bankruptcy. These letters can be misleading and many debtors believe, after reading the letter, that they must take the course from that particular company.
Companies get a list of bankruptcy filings and the addresses of all people who file, then send a letter than says, correctly, that the debtor will not receive a discharge without taking the course. However, the problem is that the letters imply that you have to take the course with that company.
In fact, there are many approved companies that provide both the pre-bankruptcy credit counseling course and the post-filing financial management course/class. Every Chapter 7 and every Chapter 13 debtor has to take these two course. These are special bankruptcy counseling courses – not debt management programs.
Debtors who have attorneys will likely get all the information from their attorney about the courses. My clients usually use the same company for the second course that they used for the first bankruptcy credit counseling course.
These letters are nothing more than ads, but because many of them are not clear, folks are confused, believing the letter to be instructing them to take the course from that company. Speak to your attorney if you have any questions, and if you don’t have an attorney, know that you can use any of the approved bankruptcy credit counseling agencies in your area to provide either the first credit counseling course, or the second financial management class. They are required, but the prices vary from company to company. You can find companies who offer the courses online / by phone / in person.
At least one company, American Debtor Educators Online, has been contacted about some problems when bankruptcy debtors took the course for a second time from that company. They were supposed to clarify the language so people knew not to take it twice, and they were supposed to offer refunds to those who had. If you believe that you paid twice for a course, you should contact your attorney and let them know, and your attorney can file a complaint with the court system.
See also: Bankruptcy Debtor Education Class (2nd Course) by Susanne Robicsek, Charlotte NC Bankruptcy Lawyer June 5, 2009 Bankruptcy Law Network
What Is The Credit Counseling That Is Required Under The Bankruptcy Laws? by Eugene Melchionne, Connecticut Bankruptcy Lawyer.
by Brett Weiss, MD Bankruptcy Lawyer
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