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Financial Management Course Exceptions

Bankruptcy can be a viable option for people who are struggling with their finances and want to get rid of their debts. However, in order to complete this process, most people must undergo a financial management course, or what is popularly called credit counseling. This course has to be finished before a person can file a Chapter 7 or Chapter 13 bankruptcy claim, so that he or she is fully informed about the potential effects of financial difficulties and bankruptcy. While this is typically required of every debtor potentially pursuing bankruptcy, there are a few exceptions to this rule.

3 Excepted Reasons

People seeking bankruptcy might not have to go through credit counseling if certain circumstances exist, as the bankruptcy code in the U.S. allows for extenuating circumstances to exempt a person from this requirement. Typically, a debtor will be exempt from completing this part of the process if:

  • The course is not offered near him or her in a language they comprehend
  • There are only unapproved courses available near the debtor
  • The debtor has a mental disability, is an active duty military member, or is otherwise mentally unable to take or benefit from the course

In these instances, some people can bypass the credit counseling that is usually mandatory for those seeking bankruptcy.

Contact Us

If you or someone you care about is thinking of filing for bankruptcy and you have questions about this process, particularly the credit counseling requirement, then our lawyers at the Russell Van Beustring P.C., can provide the answers and assistance you need. Understand your financial options and the bankruptcy process in-depth by calling 713-973-6650 today.


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