Debtor Education (Bankruptcy) Law and Legal Definition
Debtor education is similar to credit counseling. This process educates the debtor about credit, budgeting, and financial management. As an alternative to bankruptcy, credit advisory service is offered to persons with excessive debts that cannot be repaid. The new bankruptcy laws provide that before filing for bankruptcy a debtor must undergo credit counseling with an approved provider [11 USCS § 521(b)].
A debtor may also be required to attend debtor education course. The purpose of this course is to teach a person how to better manage the finances after bankruptcy. It will take more time to complete than your credit counseling session and may last from 1 to 3 hours.
