What is the debtor education course for bankruptcy?

The debtor education course (also called a financial management course) is the second of two required courses for bankruptcy filers under 11 U.S.C. Section 111. It teaches budgeting, financial management, and how to use credit responsibly after bankruptcy. You must complete it after filing but before receiving your discharge.

How much does the debtor education course cost in Kansas City?

Most approved providers charge between $10 and $50 for the debtor education course. Online courses are typically less expensive than in-person options. Fee waivers may be available for low-income filers -- ask your provider or check with the U.S. Trustee's office.

When do I need to complete the debtor education course?

You must complete the debtor education course after filing your bankruptcy petition but before your discharge is entered. In Chapter 7, this is typically within 60 days of the 341 meeting. In Chapter 13, you must complete it before finishing your payment plan. Missing the deadline can result in your case being closed without a discharge.

Is the debtor education course the same as credit counseling?

No. There are two separate required courses: (1) Credit counseling, which must be completed before filing, and (2) Debtor education (financial management), which must be completed after filing. They are different courses, often from different providers, and you need certificates from both.

Can I take the debtor education course online?

Yes. Most approved providers offer online courses that can be completed from home in about 2 hours. The U.S. Trustee maintains a list of approved providers for Missouri and Kansas at justice.gov/ust. Make sure your provider is approved for the district where your case is filed.

What happens if I don't complete the debtor education course?

If you do not file your Certificate of Debtor Education (Official Form 423) with the court, the court will close your case without entering a discharge. In Chapter 7, the court may issue a notice giving you 45 days to file the certificate before closing the case. You lose the primary benefit of bankruptcy -- the discharge of your debts.

Kansas City Bankruptcy Debtor Education Course -- Required Steps & Approved Providers

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.

Important: These are different courses from different providers. Completing credit counseling does NOT satisfy the debtor education requirement. You need both certificates.

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

Pro tip: Complete the course and file the certificate as soon as possible after filing. Don't wait for a reminder from the court. If the court closes your case without a discharge because the certificate wasn't filed, you may need to file a motion to reopen -- which costs time, money, and delays your fresh start.

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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