Some years back, when you decided to file for bankruptcy it was a straightforward decision despite the complications associated with bankruptcy. However, in 2005 there were some changes made to the federal bankruptcy laws. One of the new requirements was that all debtors must attend bankruptcy classes.

The debtor is obligated to attend two different types of classes during the bankruptcy proceeding. The first one is for pre-filing purpose while the second one is for pre-discharge purpose. The aim of the pre-filing course is for debtors to gain knowledge of how the bankruptcy process works. They also learn what the long term consequences are and what other options are available to them before they file for bankruptcy. A pre-filing counselor will also assess your income and expenditure. They will then come up with a budget and look if there are other alternatives to bankruptcy. You are also taught about filing for the various types of bankruptcies available. Once you have completed the course, you are issued with a certificate of completion. This is what you will use when you decide to go ahead with proceedings.

The pre-discharge classes are attended when you file for the bankruptcy to the time the case is discharged. These classes teach the debtor about budgeting and financial management. They also learn about the proper use of credit, how to rebuild their credit record and how to avoid slipping back into debt. The debtors also get a certificate after completion of the classes. They are required to file it with the court so that they can get a discharge.

It is also possible to register for bankruptcy classes online. These classes are an eyeopener to the bankruptcy world and you get to know your rights in this situation. You will also have support from other people who attend which will boost your morale to get back on your feet.