A debtor education course by an approved provider should include information on developing a budget, managing money, using credit wisely, and other resources. Like pre-filing counseling, debtor education may be provided in person, on the phone, or online. The debtor education session might last longer than the pre-filing counseling about two hours and the typical fee is between 50 and 100. As with pre-filing counseling, if you are unable to pay the session fee, you should seek a fee waiver from the debtor education provider.

Once you have completed the required debtor education course, you should receive a certificate as proof. This certificate is separate from the certificate you received after completing your pre-filing credit counseling. Check the U.S. Trustees website to be sure that you receive the certificate from a debtor education provider that is approved in the judicial district where you filed bankruptcy. Unless they have disclosed a charge to you before the counseling session begins, debtor education providers may not charge an extra fee for the certificate.

Important Questions to Ask When Choosing a Credit Counselor

Its wise to do some research when choosing a credit counseling organization. If you are in search of credit counseling to fulfill the bankruptcy law requirements, make sure you receive services only from approved providers for your judicial district. Once you have the list of approved organizations in your judicial district, call several to gather information before you make your choice. Some key questions to ask are:

What services do you offer?

Will you help me develop a plan for avoiding problems in the future?

What are your fees?

What if I cant afford to pay your fees?

What qualifications do your counselors have? Are they accredited or certified by an outside organization? What training do they receive?

What do you do to keep information about me (including my address, phone number, and financial information) confidential and secure?

How are your employees paid? Are they paid more if I sign up for certain services, if I pay a fee, or if I make a contribution to your organization?

For More Information and Assistance

The U.S. Trustee Program promotes integrity and efficiency in the nations bankruptcy system by enforcing bankruptcy laws, providing oversight of private trustees, and maintaining operational excellence. The Program has 21 regions and 95 field offices, and oversees the administration of bankruptcy in all states except Alabama and North Carolina.

If you have concerns about approved credit counseling agencies or debtor education course providers, such as the failure to provide adequate service, please contact the U.S. Trustee Program by email, or in writing at Executive Office for U.S. Trustees, Credit Counseling and Debtor Education Unit, 20 Massachusetts Avenue, N.W., Suite 8000, Washington, D.C., 20530. Provide as much detail as you can, including the name of the credit counseling organization or debtor education course provider, the date of contact, and whom you spoke with.

The FTC works for the consumer to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues contact the FTC toll-free, 1-877-FTC-HELP (1-877-382-4357). The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.

If you are having credit problems, it is important to know what creditors and collection agencies may and may not do to collect debts.

The state Consumer Protection Act prohibits some debt collection practices. When dealing directly with you, creditors and collection agencies may not:

Call you more than twice for each debt in each 7 day period at home, or call you more than twice for each debt in each 30 day period at someplace other than your home.

Call you without identifying both the name of the creditor and the name of the person calling.

Call you at times other than your normal waking hours. If your waking hours are unknown, then the creditor or collector may only call between 8:00 a.m. and 9:00 p.m.

Visit your home at times other than those mentioned above. A collector cannot visit more than once in any 30 day period for each debt, unless you give permission for additional visits.

Cause you to be charged for long distance calls (or other similar costs).

Call you at work if you requested that they not call. Your oral request is valid for only 10 days, unless you confirm it in writing within 7 days of making the request. Written request are valid until you write to the collector removing the restriction.

Contact you directly, if you have told the creditor or collection agency to only contact your attorney.

Falsely threaten to take legal action.

Use profane or obscene language.

Additionally, creditors and collection agencies may not

Tell anyone (including friends, neighbors, relatives, or employers) about your debt.

Send collection notices in a way that openly indicates or implies that you owe a debt (for example, using postcards or descriptive return addresses.)

Federal law provides some additional protections against debt collection agencies. (This law does not apply to creditors):

Collectors must verify your debt. Collectors must stop calling you if, within 30 days after you are first contacted, you send the agency a letter indicating that you do not owe the debt. They can only renew their collection activities if you are sent proof of the debt.

You may stop a debt collector from contacting you. Write a letter to the collector telling them to stop contacting you. Once the collection agency receives your letter, they may not contact you again except to say there will be no further contact. They also may contact you to inform you if they are going to take some specific action, such as suing you.

Warning Signs of When You Are In Too Much Debt

Many people these days have more debt than they can handle. Some even have more than they make in a single year before taxes. But how do you know when you have too much debt? And how did you get into this situation? It may not seem possible that you could have gotten so far in debt you feel as if you are drowning in it.

Getting into a lot of debt can come from the obvious things such as buying too many luxuries like new cars, a big house, the best appliances, etc. Big purchases add up the fastest because they are more expensive. Getting too many at once without paying off previous ones can put you in financial straights to pay off the loans. This of course can lead to repossession of these items if you are not careful. Small purchases over time on a credit card, without paying the balance in full each month, will get you in high debt. And you wont even know how you got so deep because you have nothing big to show for it. Unpaid hospital bills will add up if they are ignored. They also affect your credit rating. Even with insurance, they can get steep depending on what the bill is for in the first place. Paying only the monthly minimum on any card while continuing to use it will cause your debt to mount. Its like making many small purchases because it sneaks up on you and suddenly you cant make all the minimum payments without having anything left over afterward.

Student loans are a culprit of high debt that many people dont think about. It is getting even more serious with tuition costs rising yearly as well. It may seem hard to believe but people also get in over their heads trying to keep up with their neighbors. These days people will act like they have more money than they really do just to not be left behind in fixing up their house, owning a Siamese cat, or other such things. Some good, some bad. Having children can even be a culprit in your high debt. They need so much all the time, that you could suddenly have spent 500 and see nothing in return. And getting stuck in a job where there is no advancement or wage increases even yearly can get you farther into debt. Of course, any combination of these problems can plague you with high debt.

In this day of high debt, many people are using debt consolidation to help lower their bills. A debt consolidation lowers your payoff by negotiating with your creditors for a smaller payment. You have to save for it before you can pay it off, which can take a long time. Especially if you are so stretched you cant save any money for retirement. But the payoff can be 40-60% off what your total amount owed.