Debtor Education Requirements in Bankruptcy

Mandatory Credit Counseling and Financial Management Courses

When the bankruptcy laws were overhauled in 2005, Congress added two course requirements. The goal of these mandatory courses is to make sure people understand their debt relief options before they undertake bankruptcy and to prevent people from falling into debt again after a bankruptcy discharge.

At Hoglund, Chwialkowski & Mrozik, PLLC, we support the debtor education provisions because we understand the value of good credit and budgeting skills. We can recommend Phil Chwialkowski for a session on credit counseling, credit repair and budgeting that meets the pre-filing and pre-discharge requirements. Phil is an approved debtor education services instructor approved by the Office of the United States Trustee. He can be contacted at 612-791-1766.

If you are considering bankruptcy or you are ready to proceed with your Chapter 7 or Chapter 13 petition, call us today at 800-850-7867 or 651-202-2203.
· Phone consultations available
· Convenient meeting locations throughout the Twin Cities
· Detailed analysis of budgeting and credit repair

Minnesota Bankruptcy and Debtor Education Attorneys

The “new” bankruptcy law created two prerequisites for debtors:

  • Credit counseling — Before you can file a bankruptcy petition, you must complete a brief credit counseling class that explains what bankruptcy is and how the bankruptcy process works, and explores alternatives for dealing with creditor actions and getting your debts under control.
  • Financial management — Before you can receive a discharge of debts, you must complete an approved post-petition course on budgeting and credit repair to prepare for life after bankruptcy.

These courses can be taken over the phone, over the Internet or in person, but such courses are not always prepared or presented by people who understand bankruptcy law.

Phil Chwialkowski provides a thorough introduction to these topics and takes the time to explain them in the context of your specific situation. His course usually costs $50 and fulfills the debtor education required under the Bankruptcy Code. You will be issued a certificate of completion that will be filed with the bankruptcy court.

Understanding Credit, Budgets and Life After Bankruptcy

Why does it matter if you have good credit? The better your credit history and credit score, the better your chances of obtaining a low-cost loan or insurance policy, renting an apartment or qualifying for a job.

If you can improve your credit score just a little, you may be able to qualify for a lower interest rate on a mortgage or credit card, which can save you thousands of dollars in interest payments. Conversely, a low credit score can result in higher interest rates, lower credit limits or denial of applications for credit.

Unfortunately, many consumers do not appreciate why their credit score and history are significant, nor do they know the simple things they can do to build and protect a solid financial reputation.

Call Us Now · 800-850-7867 or 651-202-2203
The Hoglund Promise · What Our Clients Say

The first step to addressing your debt problems and repairing your credit is to schedule an appointment with Phil Chwialkowski at 612-791-1766 or by calling Hoglund, Chwialkowski & Mrozik, PLLC, at the numbers above. Our lawyers always provide a free initial consultation.