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Get A Fresh Start Through Bankruptcy

What is a bankruptcy certificate and how do you obtain it?

On Behalf of | Sep 28, 2022 | Firm News |

Going through bankruptcy in Tennessee can enable you to obtain a fresh financial start. To initiate this process, you’ll need to get your bankruptcy certificate. A bankruptcy certificate shows that you completed two important educational programs. Here’s a closer look at how to get one.

Choosing the right type of bankruptcy

You might be unaware that a few types of bankruptcy exist. In Tennessee, most people file for either Chapter 7 or Chapter 13 bankruptcy. If you can’t pay back your debts, it’s best to file for Chapter 7 bankruptcy. But filing for Chapter 7 bankruptcy also means having some or all of your property liquidated to pay off your debt. People filing for Chapter 13 bankruptcy must pay back some of their debts but get to keep their properties.

Prerequisites to obtain a bankruptcy certificate

Before you can get your bankruptcy certificate, you’ll need to complete a few courses. First, you’ll need to complete a credit counseling program. As long as the state of Tennessee approves this program, you can enter and complete it. After completing this program, you’ll get your bankruptcy certificate. This certificate allows you to file for bankruptcy, but your courses aren’t over yet. Also, this initial bankruptcy certificate is only valid for 180 days.

Once the court approves your filing, you can attend a new debtor education course under Tennessee law. This course will teach you how to manage your money and avoid credit-related expenses. After completing these courses, you’ll receive a new bankruptcy certificate.

How much does it cost?

The exact costs for a bankruptcy certificate will vary. Expect to pay about $50 for your credit counseling session. Completing a debtor education course can cost anywhere from $50 to $150.

To wrap things up, getting a bankruptcy certificate requires completing a few programs. After completing both programs, your bankruptcy certificate enables you to begin the process of officially discharging your debts.