Financial Management Course Exceptions

Congress modified the bankruptcy code in 2005 to ensure that those who participate in bankruptcy are fully educated about the financial issues that can lead to severe debt. Now, potential bankruptcy candidates must complete credit counseling, or a financial management course, prior to receiving any discharge of debt through Chapter 7 or Chapter 13 bankruptcy. Although this requirement is meant to help debtors, it does create an added layer of complexity that can make bankruptcy more difficult for some individuals.

At Hong Law, PLC, our legal team is committed to helping debtors recover from their financial situations through the effective use of bankruptcy law. If you are considering bankruptcy or have already begun the process, contact an experienced Cedar Rapids bankruptcy attorney from our offices today at (319) 294-5853 to learn more about your rights as a debtor and your options for relief.

Reasons for Bypassing the Financial Management Course

Although everyone seeking debt discharge is required to undergo credit counseling as mandated by law, there are a few exemptions built in to the bankruptcy code to ensure that extenuating circumstances do not prevent honest debtors from filing for bankruptcy. You may be able to bypass the financial management course required under bankruptcy law if you are affected by one of the following:

• There are no courses available in your area offered in a language you understand
• There are no approved courses available in your district
• You are mentally incapable of understanding or benefiting from the counseling

These exceptions are highly unusual, and in that vast majority of cases you will be required to complete the credit counseling in order to receive debt forgiveness.

Contact Us

The bankruptcy code is complex, but it can be easily navigated with the help of a knowledgeable Cedar Rapids bankruptcy lawyer. If you are considering bankruptcy and want to learn more about credit counseling and other requirements, contact Hong Law, PLC, today at (319) 294-5853.