Bankruptcy is a legal process in California that aims to help people who owe money get some relief from their debt while at the same time assisting people who are owed to get paid from assets or property that the debtor has. The person in debt can receive a bankruptcy certificate during this process if they choose to.
Bankruptcy certificate in California
A bankruptcy certificate is a document that proves you’ve taken a course to learn how to manage your finances during the bankruptcy process. The court will issue this certificate before your bankruptcy case is completed.
Getting a bankruptcy certificate work in California
The debtor education course that you need to complete to obtain a bankruptcy certificate covers everything from money management and budgeting to how you can use credit wisely. In California, you can do this course online, by phone, or in person. It takes only 60 to 90 minutes to complete. And the filing fee is approximately $50 to $100.
Once done, you can file a petition with the court to give you this document, or your course provider can petition for you, whichever is easier. This certificate is valid for six years after which you can renew it.
The purpose of a bankruptcy certificate
Only credit counseling companies approved by the U.S. Trustee Program in California are allowed to provide the course that you need to take to obtain the certificate.
A bankruptcy certificate is necessary because:
- It proves your devotion to resolving and preventing debts.
- A bankruptcy certificate can assist you in obtaining new credit in the future.
- You avoid collection calls and legal action from creditors.
- With this certificate, you’d likely get better interest rates on future loans.
If you are considering obtaining a bankruptcy certificate in California, you can find a counselor with the help of your bankruptcy attorney, or you can visit the United States Department of Justice website to see a list of approved providers.