Required education for filing bankruptcy
For many years, people in Florida and around the country could file for bankruptcy without being required to go through any process that would educate them about their financial options. This changed in 2005, when laws were passed that made credit counseling from an approved agency prior to filing mandatory. People are now also required to finish a course in financial management before a discharge will be issued.
A course in credit counseling will help a person determine if bankruptcy is necessary or the best way to eliminate debt. There are certain types of debts that bankruptcy will not discharge, and people may also be in a situation where making changes to their spending habits could allow them to pay back what they owe.
The goal of financial management courses, also referred to as debtor education, is to prevent people from needing to file for bankruptcy again. These courses are designed to help individuals better manage their money and not get into large amounts of avoidable debt. They will also cover how people can prepare for and deal with emergencies in ways that do not put their finances at risk.
While filing for bankruptcy can help someone get out of debt, it is important for people to understand how the process works. Additionally, people may need to figure out if they should go with a Chapter 7 or Chapter 13 bankruptcy filing. A bankruptcy lawyer can explain the differences between the two chapters and can also describe the eligibility requirements associated with each one.