What is a discharge?
The discharge is defined as “a release of a debtor from personal liability for certain dischargeable debts. Some debts, such as certain taxes and student loans, cannot be discharged. A discharge also prevents creditors owed dischargeable debts from taking any action against the debtor or the debtor’s property to collect those debts.”
Discharge in Bankruptcy – Bankruptcy Basics
What is the financial management course?
Debtors in Chapter 7, 13, or Chapter 11 cases where §1141(d)(3) applies must complete a Financial Management Course from an approved provider and file a Certificate of Debtor Education before a discharge can be entered. In joint cases, each debtor must file a certificate. If the provider does not file it, the debtor must submit it to the court.
- Chapter 7: The certificate must be filed within 60 days after the first scheduled §341 meeting. A discharge cannot be entered until at least 60 days after that meeting, and the timing may vary. The discharge does not close the case; it remains open until the trustee finishes administering the estate.
- Chapters 11 and 13: The certificate must be filed before the final plan payment or before filing a motion for discharge under §1141(d)(5)(B) or §1328(b). Discharge timing varies by case.
The court may waive the course requirement if the debtor files a motion and meets the criteria in 11 U.S.C. §109(h)(4). Failure to complete the course and file the certificate may result in the case being closed without a discharge under 11 U.S.C. §§727(a)(11), 1141(d)(3)(C), and 1328(g)(1).
Where can I find a provider to take the financial management course?
The U.S. Trustee’s Office provides a list of approved course providers.