Credit Counseling & Debtor Education

Educational reference to the two financial-education requirements that apply to individual debtors in the Western District of Missouri: pre-filing credit counseling under 11 U.S.C. § 109(h), and post-filing personal financial management education under 11 U.S.C. § 727(a)(11) (Ch. 7) or § 1328(g) (Ch. 13).

Pre-filing credit counseling — 11 U.S.C. § 109(h)

An individual may not be a debtor under any chapter unless, during the 180-day period preceding filing, the individual received a briefing from an approved nonprofit budget and credit counseling agency that outlined opportunities for available credit counseling and assisted in performing a related budget analysis.

The certificate of completion is filed with the petition (or within 14 days after filing where the court permits) and is attached to Official Form 101 (Voluntary Petition).

Allowed exceptions

Where to find approved providers

The U.S. Trustee Program maintains the authoritative list of approved credit counseling agencies, organized by state and by federal judicial district. The list is updated regularly as providers are added, suspended, or removed.

Open Bankruptcy Project does not maintain a separate provider list. The USTP roster is the only authoritative source: providers can lose approval at any time, and the official list is the only one updated in real time.

Course format and cost

The pre-filing briefing must be no fewer than 60 minutes per § 109(h)(1). Most providers offer the briefing in three formats: in-person, by telephone, or by internet. Typical fees range from approximately $10 to $50 depending on the provider; agencies must offer the service free or at reduced cost to debtors who are unable to pay (28 C.F.R. § 58.16).

Post-filing debtor education — 11 U.S.C. § 727(a)(11) / § 1328(g)

After filing, but before discharge, individual debtors in Chapter 7 and Chapter 13 cases must complete an instructional course in personal financial management from an approved provider. The course is at least 2 hours and covers budgeting, money management, and the wise use of credit. The certificate of completion is filed using Official Form 423.

Approved debtor education providers are listed alongside credit counseling providers at the same USTP page.

Consequences of non-compliance

Failure to obtain the pre-filing certificate is a basis for dismissal under In re Hubbard, 333 B.R. 377 (Bankr. S.D. Tex. 2005), and similar authority. Failure to complete debtor education prior to discharge will result in the case being closed without discharge entered; the debtor must then move to reopen the case and pay the reopening fee under 11 U.S.C. § 350(b).

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