What Happens If I Do Not Complete My Debt Management Course?
There are two courses required in the bankruptcy process. The first course is called Credit Counseling and must be completed before you can file for bankruptcy. The second course is called Debt Management and must be completed after your case is filed. For more information about Credit Counseling and Debt Management, see my article entitled, “The Credit Counseling and Debt Management Requirements In Bankruptcy.”
You must complete the Debt Management course before you can receive your discharge. The discharge is the part that eliminates your debts. If you do not complete your Debt Management course before the deadline to do so, the Bankruptcy Court will close your case without issuing a discharge and your creditors can resume collection activities against you.
A Motion to Reopen Case can be filed, requesting that the Court reopen your case to allow you to complete your Debt Management course so that you can receive a discharge. There is a $260 filing fee that must be paid to the Bankruptcy Court at the time you file a Motion to Reopen Case. The Bankruptcy Court typically grants this type of motion. But the better thing to do is to complete your Debtor Education course timely so that you do not have to pay an extra $260 in your case.
The above information is a general overview and is not intended to be used as legal advice. If you are considering filing for bankruptcy, the best thing to do is call our office at 248-557-3645 and schedule a free consultation so you can receive advice which is tailored to your specific circumstances.
By: Michael Benkstein, Esq.
Managing Attorney, Bankruptcy Department
The Law Offices of Joumana Kayrouz, PLLC