December 15, 2008

Pre and Post Filing Bankruptcy Class

The rules for filing bankruptcy were changed a for or five years ago. One of the changes was people filing bankruptcy would be required to take "Pre Filing" bankruptcy course. Although I was kind of taken aback at having to take a bankruptcy course prior to filing bankruptcy in Lansing Michigan. The person filing for bankruptcy not only has to pay for their attorney now they have to pay for a pre bankruptcy course and a post bankruptcy course. The classes typically cost $50.00 per bankruptcy education course. I still have to shake my head, your broke and the government is making you not only pay to file bankruptcy you also have to pay a fee to some company to educate you about bankruptcy. So, now you pay the attorney, 299.00 to actually file your bankruptcy case. Thinking about skipping the bankruptcy classes?? You have no choice. You can't even file unless you take the first class. You can't close your case until you have finished the post bankruptcy course. The best idea is to walk into your 341 having completed your post bankruptcy course.

Before you take a course you need to make sure they are approved by the government to provide the course. I found a cheaper company that charged $30.00. However, they did not automatically send my certificate to my attorney and I may have to wait. I decided to pay 50.00 for the more expensive one and the certificate was sent to my attorney and I was able to quickly download our certificate ( me and my wife). I also like the course was available online. I still have not taken the post bankruptcy class or Bankruptcy course.

A part of the prefiling bankruptcy class requires the agency to collect everything about your current situation. They will enter all your creditors into their database, all of your collection accounts and all of your utilities. The entity collecting this information will ask you how much you spend on EVERYTHING.. This is where it is a pain.

Suggestion.. I pretty much had this allready. However, take your time on this part answer all the questions truthfully and to the best of your ability. The company is trying to put to gether a Debt Management Plan(DMP) for you. I knew I didn't want to do a DMP. I wanted to file bankruptcy. However, play along with them let them collect all of your information for the DMP.

Why? they will or should provide you with a copy of the plan. USE it to help you fill out the paperwork on your credit matrix when you file bankruptcy.. I didn't do this.. however, looking back I should have spent the time doing this with the class. My thought now is. I should have made them earn their money for my requirement to take this class and me chosing them.

Don't get involved in a DMP.. You can do this yourself if you think it is a viable option. Nothing worse than sending someone else a check to have them mix, or mess up the payments. Eitherway, take advantage of the pain in the but required bankruptcy class.