Two Required Courses, Not One
Federal bankruptcy law requires every individual filer to complete two separate courses:
Credit Counseling (Before Filing)
Required under 11 U.S.C. Section 109(h). Must be completed within 180 days before filing your petition. Covers budgeting basics and alternatives to bankruptcy. You'll receive a certificate (Official Form 101, Exhibit D) that gets filed with your petition.
Debtor Education / Financial Management (After Filing)
Required under 11 U.S.C. Section 111. Must be completed after filing but before your discharge. Covers budgeting, money management, and using credit wisely after bankruptcy. You'll file a Certificate of Debtor Education (Official Form 423) with the court.
Debtor Education Course Details
What the Course Covers
- Creating and maintaining a household budget
- Managing income and expenses after bankruptcy
- Understanding and rebuilding credit
- Avoiding future financial distress
- Consumer protection basics
Duration: Approximately 2 hours
Cost: $10-$50 (fee waivers available for low-income filers)
Format: Online, phone, or in-person
Deadlines
| Chapter | When to Complete | What Happens If You Miss It |
|---|---|---|
| Chapter 7 | After filing, before discharge (typically within 60 days of the 341 meeting) | Court closes case without discharge. You may get a 45-day notice to file the certificate. |
| Chapter 13 | After filing, before completing your payment plan | Discharge not entered until certificate is filed. Years of plan payments with no discharge at the end. |
| Chapter 11 Sub V | After filing, before discharge under Section 1191(a) or at completion of plan under Section 1191(b) | Same - no certificate, no discharge. |
Approved Providers for Kansas City
The U.S. Department of Justice maintains a list of approved debtor education providers. You must use a provider approved for the district where your case is filed:
| If You Live In | District | Provider List |
|---|---|---|
| Kansas City, MO (Jackson, Clay, Platte, Cass counties) | Western District of Missouri | USTP Approved Providers - Missouri |
| Kansas City, KS (Johnson, Wyandotte counties) | District of Kansas | USTP Approved Providers - Kansas |
Most providers offer courses online that can be completed from anywhere. Verify the provider is approved for your specific district before enrolling.
Filing the Certificate
After completing the course, you will receive a Certificate of Debtor Education. This must be filed with the Bankruptcy Court:
- Form: Official Form 423 (Certification About a Financial Management Course)
- Where: Filed electronically (if you have an attorney) or at the clerk's office
- W.D. Mo. Clerk: 400 E. 9th Street, Kansas City, MO 64106
- D. Kan. Clerk: 500 State Avenue, Room 161, Kansas City, KS 66101
Frequently Asked Questions
Do both spouses need to complete the course?
Yes. If you are filing jointly with a spouse, both of you must complete the debtor education course. You can take it together or separately, but each person needs their own certificate.
Can I take the course before filing?
No. The debtor education course must be taken after filing your petition. The credit counseling course is the one you take before filing. They are separate requirements.
Is there a fee waiver?
Some providers offer reduced fees or waivers for filers below 150% of the poverty line. Check with the provider directly. The court does not grant fee waivers for the course itself, but some providers have their own hardship policies.
What if my attorney never told me about this requirement?
Unfortunately, some filers learn about the debtor education requirement only when the court threatens to close their case. If you are at risk of losing your discharge, complete the course immediately and file the certificate. If the court has already closed your case, you may need to file a motion to reopen under Fed. R. Bankr. P. 4007(c).
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