Clients are often confused about why they need a second session (pre-discharge education) before the courts will discharge their personal bankruptcies. (The discharge releases debtors from personal liability for certain debts, allowing them a financial fresh start.)
As designated in bankruptcy reform that took effect in 2005, pre-discharge debtor education is required so consumers will be prepared to manage their finances after bankruptcy. During the pre-discharge session, clients will start developing a budget and establish how they’ll adjust to life after bankruptcy. Clients will also learn how to how to rebuild their credit, and how to recognize and avoid predatory credit offers and scams. The goal is to ensure that consumers are equipped to make good financial decisions and avoid having to file bankruptcy in the future. More on Clearpoint’s pre-discharge debtor education certification.