We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.
Finance

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

What Are the Different Types of Debtor Education?

Lainie Petersen
By
Updated: May 17, 2024
Views: 5,604
Share

Debtor education programs provide information on debts, responsible credit management, and personal finance issues to individuals. Some programs are designed to assist people in understanding how to properly manage debt so that they can get their personal finances under control. In other cases, a debtor education program may be specifically targeted toward individuals who are in the process of bankruptcy or who are seeking help through a debt management plan. Courses are typically available through a variety of sources, including not-for-profit community service agencies and credit counseling firms. Depending on the laws in a particular jurisdiction, it may be possible to complete a debtor education course online, though in some places course participants must take the course in a traditional classroom setting.

In the United States, when an individual goes through bankruptcy, he or she is required to complete a two-stage educational program. In the first phase, a debtor must complete credit counseling with an approved credit counseling organization. During credit counseling, the debtor will discuss his situation with a counselor, who may present several options for dealing with the debt that do not include filing for bankruptcy. The counselor may also provide the debtor with basic information about budgeting and responsible credit use.

If the debtor does decide to file for bankruptcy, he or she will need to complete a debtor education course prior to receiving a bankruptcy discharge. In cases where an individual files for Chapter 7 bankruptcy, he or she may complete debtor education soon after filing a case. When a debtor files for Chapter 13 bankruptcy, he or she may not complete the debtor education program until the end of his or her payment plan. The debtor education course typically provides more in-depth information about money and debt management so as to help individuals make the most of their fresh start after bankruptcy. Federal law requires those who file for bankruptcy to take these courses through approved providers and to provide a certificate of course completion to the court in order to receive a discharge of their remaining debt.

Some debtors prefer to avoid bankruptcy and may instead work with a credit counselor or debt management firm to work out an alternative debt negotiation or repayment plan. In many cases, these organizations will still require the debtor to complete an educational program. The program may be the same as that offered to those going through bankruptcy, or it may reflect the philosophy of the organization that provides the debtor education. In either case, debtors should inquire about course delivery methods, as many credit counselors now offer online programs that can be completed in the privacy of the student's home.

Share
WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Lainie Petersen
By Lainie Petersen
Lainie Petersen, a talented writer, copywriter, and content creator, brings her diverse skill set to her role as an editor. With a unique educational background, she crafts engaging content and hosts podcasts and radio shows, showcasing her versatility as a media and communication professional. Her ability to understand and connect with audiences makes her a valuable asset to any media organization.

Editors' Picks

Discussion Comments
Lainie Petersen
Lainie Petersen
Lainie Petersen, a talented writer, copywriter, and content creator, brings her diverse skill set to her role as an...
Learn more
Share
https://www.wisegeek.net/what-are-the-different-types-of-debtor-education.htm
Copy this link
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.