The Financial Management Course Requirement
in Your Chapter 7 Case

  When Congress changed the Bankruptcy Code in 2005, it added two education requirements.  The first obligation is called the “credit counseling” requirement.  With limited exception, before you are allowed to file a Chapter 7 case, you must attend a credit counseling course and your lawyer must submit a certificate of completion of this course at the time your Chapter 7 case is filed.

  The second education requirement is called the "financial management course" requirement and it obligates you to attend a second course and to file your certificate of attendance before your case closes.  If you fail to file your financial management course certificate, you will not receive your Chapter 7 discharge.

Purpose of Financial Management Course Obligation

  The purpose of the financial management course is to help you identify the issues that led you into bankruptcy in the first place and to provide you with the tools and resources to learn more about finances.  The overriding goal of the financial management course is to help you avoid financial problems going forward.  Many of the vendors who provided credit counseling also provide financial management course offerings.

  You can expect to pay between $30 and $50 for your financial management course certification.  Most vendors offer on-line or telephone based education, and some offer live education in a classroom setting.

  Your proof of completion of the financial management course will be a certificate that will be mailed or e-mailed to you.  You and your lawyer must see to it that this certificate is filed with the clerk of court prior to the date your case is closed - usually four to six weeks after your 341 hearing.  If your case gets closed before your file your course certificate, you may be able to reopen your case to file this document, but re-opening involves a filing fee, attorney's fees and the risk that your judge will not agree to the reopening.

  Clark and Washington recommends that you obtain your financial management course certificate as soon as possible after your case is filed.  If you have any questions about this second education course requirement, please call our office.