Along with the credit counseling requirement, the debtor education provision was added to the bankruptcy laws in 2006.

Debtor education is a course in personal financial responsibility that all individual debtors must complete before they are eligible for their bankruptcy discharge.

The debtor education requirement is intended to reduce the number of repeat filings by helping debtors to understand their finances and better manage their resources.


DO I HAVE TO TAKE THE COURSE?

Most individuals who file bankruptcy are required to take the debtor education course. If spouses are filing together, each must obtain a separate certificate.

You may be exempt from this requirement if:

• no debtor education providers are available in your district;
• you suffer from a physical disability that prevents you from attending counseling;
• you have a mental incapacity; or
• you are on active military duty in a combat zone

Your attorney will be able to advise you as to whether you qualify for an exemption.

WHO OFFERS THE COURSE?

Debtor education courses are taught by agencies approved by the US Trustee. The US Trustee maintains a list of approved agencies, which anyone can access. 

HOW AND WHERE DO I TAKE THE DEBTOR EDUCATION COURSE?

You can take the course as a live class, online or over the phone. Not every provider offers each type of class, however.

The course covers a range of topics, including how to develop a budget, managing money, obtaining and using credit wisely, dealing with emergencies, and how to be a savvy consumer.

In some jurisdictions, the Chapter 13 trustee offers a course that will fulfill the requirements. Your attorney will be able to provide you more information about your options.

WHEN SHOULD I TAKE THE COURSE?

You must take the course and obtain a certificate of completion before you are eligible to obtain your discharge, regardless of whether you filed a Chapter 7 or a Chapter 13 case.

If you fail to file a certificate with the court, your case will be closed without a discharge even though you were otherwise eligible. If you later want the discharge order issued, you will have to pay another filing fee and petition the court to re-open your case. You can expect your attorney to charge you an additional fee for the extra work. You will also likely have to appear at a hearing before the judge to explain why you did not take the course when you should have.

HOW MUCH TIME DOES THE COURSE TAKE?

The debtor education component usually takes about two hours, although that may be extended depending on where you take it, the provider, or the extent of the information you must provide.

HOW MUCH DOES THE COURSE COST?

The agencies that provide debtor education for bankruptcy are allowed to charge a reasonable fee. Most agencies charge between $10 and $50.

If you cannot afford the fee, the agencies must provide it to you for free or at a reduced rate. If your income is under 150% of the federal poverty rate for a family of equal size, the agency must offer you a waiver of the fee.

Some offer package deals if you agree to take your pre-bankruptcy credit counseling and the debtor education course through the same provider.

Some attorneys have worked out arrangements with particular agencies to provide their clients with the required debtor education for a reduced fee. Sometimes the attorney will pick up the cost herself. In that case, the agency must disclose to you how much the agency is charging the attorney.

DO I HAVE TO TAKE A TEST?

Yes, there is a test if you take the course by phone or over the internet, to determine if you have received and understood the material. If you do not complete the test or score below 70%, an instructor must contact you directly.

DO I GET PROOF THAT I TOOK THE COURSE?

Yes, the provider will issue a certificate that you or your attorney must file with the bankruptcy course where your case is pending.

Depending on the provider you choose, you may be offered your certificate as soon as you have completed the session or you may have to wait some period of time – usually not more than a day – before it is available. If your attorney has an arrangement with the provider, the agency usually makes the certificate available to the attorney for download.

To learn more, visit

Bankruptcy's Credit Counseling Requirement

Credit Counseling & Debtor Education Requirements in Bankruptcy.