15 May In North Carolina, Will Anyone Remind Me To Take The Financial Management Course?
Bankruptcylaw requires that two courses be taken by all consumer debtors filing for bankruptcy. First is the Credit Counseling Coursewhich must be taken before the case is filed, and no longer than six months before filing.
The second course is the Financial Management Course, which is more of a lecture about budgeting. Bankruptcy debtors must take the course after filing, and within a few months of filing. If not taken in time, a case will be close without a discharge being entered, which means the debtor won’t get the benefit they filed bankruptcy for.
There have been a few posts about reminders from courts being sent out to remind people to take their financial management course which is needed in order to receive a discharge in bankruptcy.
Some courts send reminders but some courts don’t, like the court I practice in – Western District of North Carolina. If the course isn’t taken, the court simply closes the case without discharge.
In the Western District of North Carolina, the court sends a NOTICE OF REQUIREMENT TO FILE A STATEMENT OF COMPLETION OF COURSE IN PERSONAL FINANCIAL MANAGEMENT (Official Form 23).
This is done upon the filing of the case, and it is the only reminder sent by the court. If the course is not taken and the certificate timely filed with the court, the case will be closed without a discharge being issued to the bankruptcy debtor.
Again: This is done without further notice or reminders.
If the case is close and no discharge entered, a motion to reopen the case must be filed, a hearing held, and a fee paid to the court. Not to mention any legal costs for your attorney to handle the matter.
These courses don’t really help very much, since by the time people are considering bankruptcy, it is usually too late for anything to helpavoid bankruptcy.
Debtors filing bankruptcy need to know what the requirements and procedures are for their filing district, but better yet just get the course done and the certificate filed. It is required in all districts and you need to just get it done.
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