Florida residents who file for bankruptcy to escape unmanageable financial situations are required to attend credit counseling sessions before they file their Chapter 7 or Chapter 13 petitions. They are also required to complete a debtor education course after their paperwork has been submitted. When these requirements have been met, these debtors are issued bankruptcy certificates.
Bankruptcy certificates
The credit counselling and debtor education course requirements were introduced when the Bankruptcy Abuse Prevention and Consumer Protection Act was signed into law by President George W. Bush in 2005. Individuals who file personal bankruptcies should make sure that they receive credit counseling and debtor education from companies that have been approved by the U.S. Trustee Program as these are the only organizations authorized to issue bankruptcy certificates. Exceptions are made for filers in North Carolina and Alabama because the U.S. Trustee Program does not operate in these states.
Credit counseling and debtor education
The debtors are issued two bankruptcy certificates. The certificate they receive after attending credit counseling sessions is submitted along with their Chapter 7 or Chapter 13 paperwork. The certificate they are issued after completing a debtor education course must be filed with a bankruptcy court before their debts are discharged. Credit counseling sessions help individuals to understand how their financial situations became so dire, and debtor education classes help them to manage money and prepare for life after bankruptcy.
Preventing bankruptcy abuse
The bankruptcy laws in the United States were revised in 2005 to make abusing the process more difficult. Individuals who seek debt relief must now attend credit counseling sessions before they file for bankruptcy and debtor education classes before their debts are discharged. These sessions and classes must be provided by companies approved by the U.S. Trustee Program.
