No Ticket? No Discharge: The Ticket Out of Bankruptcy
If one picks up the MBTA Red Line at Downtown Crossing, less than a block from my office, one must pay $1.25 to board. If the rider takes the T to Quincy Adams or Braintree, another $1.25 must be paid to exit the station. While it’s never happened to me personally, I can only imagine that if one does not have the $1.25 to exit, they are left to board the train again and head back into the direction they came in. Under the new bankruptcy law, debtors need a ticket to file, a topic that I discussed on December 30. There is also the new requirement to obtain a ticket out of bankruptcy: Debtor Education.
Section 727 of the Bankruptcy Code was amended to provide that a debtor cannot receive a discharge if the debtor has “failed to complete an instructional course concerning personal financial management.” Once completed, a certificate of completion is filed with the Bankruptcy Court. Thus, in addition to credit counseling, bankrupt debtors must complete a post-filing course in financial management.
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