The Second Bankruptcy Course Requirement

The second bankruptcy course requirement refers to the debtor education course, also known as the personal financial management course, or the post-filing/pre-discharge course. This course is required for individuals filing either Chapter 7 or Chapter 13 bankruptcies. Unlike the first course which must be completed before filing, the debtor education course is taken after the bankruptcy case is filed and is designed to help debtors develop budgeting, money management, and financial planning skills. Upon completion, filers must submit a certificate of debtor education to the bankruptcy court in order to receive a discharge of their eligible debts.

Steps in the Bankruptcy Process

The first step in the bankruptcy process is determining which type of bankruptcy is appropriate for the filer’s financial situation. Individuals commonly file under Chapter 7 or Chapter 13 of the Bankruptcy Code. Before filing, debtors must complete a credit counseling course from an approved provider and gather financial documents, including income records, lists of debts, assets, expenses, and recent tax returns. These documents are used to prepare the bankruptcy petition and related schedules that will be submitted to the court.

Once the bankruptcy petition is filed with the bankruptcy court, an automatic stay immediately goes into effect. The automatic stay prevents most creditors from continuing collection efforts (e.g., lawsuits, wage garnishments, and collection calls). After filing, a bankruptcy trustee is assigned to review the case and oversee the administration of the bankruptcy estate. The debtor must also attend a meeting of creditors, commonly known as the 341 meeting, where the trustee and any interested creditors may ask questions about the debtor’s financial affairs.

The final stage of the bankruptcy process depends on the chapter filed. In a Chapter 7 case, eligible debts may be discharged after the trustee liquidates any nonexempt assets, if applicable. In a Chapter 13 case, the debtor follows a court-approved repayment plan, typically lasting three to five years, before receiving a discharge of qualifying debts. Before the case can be completed, the debtor must also take a financial management course (which is the course our company provides). Once all requirements are satisfied, the court issues a discharge order, which releases the debtor from personal liability for many eligible debts.

Sage Personal Finance—A Leading Debtor Education Provider

Sage Personal Finance has been approved since 2006 by the U.S. Department of Justice and the North Carolina/Alabama Bankruptcy Administrators to provide the required second bankruptcy course in all U.S. states and territories. Sage Personal Finance provides the course via internet and phone, in English and Spanish.

Sage Personal Finance offers an optional audio read-along feature for customers who prefer to listen to the course while following the text online. Also, Sage Personal Finance provides a course with customized content for individuals aged 55 and over. The courses are updated on a regular basis to ensure the information is relevant, current, and useful.

For individuals taking the Sage course on a smartphone, the design and features of the course have been optimized for the best phone course experience.

Our customer service is available seven days a week, with U.S. based representatives answering questions in both English and Spanish. Agents can be reached via phone, email, and livechat and are available to help with registration, case number look-ups, and general information about the course.

Sage Personal Finance—Filing Certificates with the Courts Nationwide at NO cost

We are the only major nationwide debtor education provider that files second-course certificates with the bankruptcy court at no extra cost. We provide peace of mind to our clients as we help to ensure their certificates get filed in a timely manner. By submitting the certificates to the courts electronically, the certs get sent rapidly and efficiently and the filing deadlines are met.