School Days

Most people understand that bankruptcy helps those in financial trouble to discharge unmanageable debt. However, you may be surprised to learn that one of the requirements for bankruptcy is going to school; if you need to file, you might want to stock up on pens and notebooks first. You have to complete credit counseling prior to bankruptcy, and you have to take a “debtor education” course after filing for bankruptcy.

Before filing for a Chapter 7 or Chapter 13 bankruptcy in Illinois, you must complete a credit counseling course from an approved agency. The usual cost is about $50, and you can receive counseling in person, online, or over the phone. Credit counseling helps you better understand your financial options and determines if bankruptcy is necessary for you. A counselor will scrutinize your finances, review your alternatives, and offer a repayment plan if possible, although you are not compelled to accept that plan.

You are also required to take a debtor education course with an approved provider after you file for bankruptcy but prior to receiving your discharge. The aim of debtor education is to help you make better financial decisions so that you only have to file for bankruptcy once. The course suggests ways to live on a budget, manage a household, use credit wisely, and deal with emergencies.

Several laws also govern the providers of credit counseling and debtor education. Providers may not sell any information about you to third parties without obtaining your written permission first. They may not advertise or market any product or service to you during the course. Some individuals may be eligible for a fee waiver in some cases.

In the greater Chicago area, if you believe bankruptcy may be an answer for you, speak first with an experienced Chicago bankruptcy lawyer. A good bankruptcy lawyer may be able to suggest more appropriate alternatives. If bankruptcy is the right solution, a good Chicago bankruptcy lawyer will protect your legal rights and as much of your assets as possible. If you’re even considering bankruptcy, make the call today and let an experienced Chicago bankruptcy lawyer go to work for you.