Post Bankruptcy Counseling and Debtor Education


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In April 2005, President Bush signed into law the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. Under this law, the United States Trustee Program was given new responsibilities including checking whether a debtor is eligible for Chapter 7 (liquidation) or Chapter 13 (wage-earner repayment plan), to take charge of audits that will verify the accuracy of documents submitted by a debtor under Chapter 7, to certify entities that will provide credit counseling to debtors prior to their filing of bankruptcy, to certify entities that will provide financial education which individuals need to complete prior to discharging debt, and to conduct enhanced oversight on small businesses under Chapter 11.


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Post bankruptcy counseling, or more appropriately termed as personal financial management education or debtor education course, is required prior to debt discharge. Attending this course, however, will cost money. According to the United States Trustee Office, you should be asked to pay $50-$100 as course fee. There are those that offer scholarships for debtors that are clearly unable to pay for the fee. Ask them whether they can provide this assistance.



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The U.S .Trustee Office may also approve self-study of the personal financial management course for as long as provider (an accredited entity providing the course) will be able to confirm the veracity of course completion and they will be able to issue a certificate to that effect. The provider should also be able get enough information so that the U.S. Trustee Program can evaluate the effectiveness of the course.

There are three ways for you to get post bankruptcy counseling or personal financial management education. It can be done at the provider's location (check the listing of the U.S. Trustee Office for a provider nearest you), by phone or online.

In general, the course will provide you with a wealth of knowledge on how to get back on your feet. Among other things, you will learn how to make a budget, how to properly manage money, and how to use your credit wisely. These are basic principles on how to keep you afloat.

The course or counseling, as stated in the law, should be completed after filing a bankruptcy and before any debt is discharged. For a Chapter 7 case (liquidation), this means you only have a small amount of time before the course should be completed. For a Chapter 13 case (repayment), you will have more time to complete the course.