Every debtor must complete a financial management course and file the appropriate documents with the court, regarding such course, no later than 60 days after the initial date of the first scheduled Meeting of Creditors’ Hearing.
The course takes about 2 1/2 hours and may be completed online or by telephone. The subject matter of the course relates to how to proceed financially after obtaining a chapter 7 discharge. More specifically, the course explains how the discharge effects your credit report, how to create a budget and how to avoid future financial issues. The course also explains how to avoid scams relating to your credit.
If the debtor fails to complete the course and file the appropriate documents with the court in a timely manner, the debtor’s case will be closed without a discharge. This means that the debtor will still owe all of the debt and the bankruptcy filing will not have benefited the debtor. However, typically, the court will allow the debtor to obtain a discharge out of time, if the debtor completes the course and obtains the course certification. Under this scenario, the debtor must file a Motion with the court requesting to reopen the case, file the documents, and request the discharge.
At the time this blog was written, the court costs to reopen a chapter 7 case is $260.00, which is totally ridiculous.
If you need a bankruptcy lawyer in NJ, Robert Manchel, is interested in assisting you with your bankruptcy questions, at 1 (866) 503-5655.