Credit Counseling/ Financial Management Course Requirements Distinct

Wednesday, March 15, 2006 Posted By Kevin Chern

Two recent cases from the Western District of Pennsylvania clarify the distinction between the pre-filing credit counseling requirement and the pre-discharge "financial management course." In In re Granada and In re Skarbek, the court ruled on identical issues: in both cases, the debtor had completed credit counseling prior to filing and later submitted "Debtor's Certification of Completion of Instructional Course Concerning Personal Financial Management," referencing the pre-filing counseling.

In both cases, the court ruled that the financial management course requirement had not been met and directed the debtor to comlete a course on financial management and file an amended certification. In so ruling, the court specifically stated, "The credit counseling requirement must be completed prior to the bankruptcy filing in order for an individual to be eligible to file a bankruptcy petition. The financial management course must be completed 'after filing the petition.'"