Skokie bankruptcy attorney states that after a bankruptcy case is filed, you have to take a two hour financial management class in order to receive a discharge under Chapter 7 or Chapter 13 of the Bankruptcy Code. The purpose of the financial management class is to teach you about finances so that you don’t run into credit problems or debt problems in the future. Now, you know you can’t learn everything about debt and credit in a two-hour class, however a class is helpful to many people who have not been educated in this regard.
The problem with the two hour financial management class is it’s kind of like a trick in that if you don’t take it, you don’t receive a discharge. If you don’t receive the discharge in either Chapter 7 or Chapter 13, then you really have not eliminated your debt and creditors are free to pursue you and collect on the debt. The good news for the debtor is that you have the ability to refile either type of case and immediately because you didn’t file a case before that got a discharge. The bad news is that creditors to have the ability to pursue you even though most will respect the initial bankruptcy filing and think that they can’t.
What I do to avoid any problem is I have my clients take a two-hour financial management class prior to their Meeting of Creditors. That way, when they come to their Meeting of Creditors, they are technically done and there are no other requirements that they need to do. If you miss your two hour financial management class or if you fail to take it, you will have the opportunity to start over and refile a bankruptcy case, however, there is going to be additional expenses such as filing fees and attorney’s fees just like you had in your initial filing.