Frequently Asked Questions (FAQs) – Debtor Education

Please use the list of approved providers on the USTP website to find an approved debtor education provider. The USTP does not recommend any particular provider, or guarantee the quality of an approved provider's services.

Visit the USTP’s list of approved providers and scroll down to the section entitled “Approved Agencies Offering Services in Languages Other than English and Spanish.”  Select the language from the drop down list on the left.

No, credit counseling must be obtained before an individual files for bankruptcy, subject to very limited exceptions. Debtor education is a separate course that must be taken after an individual files for bankruptcy, subject to very limited exceptions.

No. Joint filers may attend the same debtor education session. The provider must issue a separate certificate to each individual.

Yes. People other than the debtor may pay for the instructional course, if the payments comply with applicable laws, regulations, and ethical requirements (such as state laws and rules concerning attorney ethics). The provider shall inform the debtor of the fee actually charged and paid on the client's behalf for the instructional course by the other person.

Yes. A provider must disclose clearly all fees that it charges for debtor education, including any separate fee for the issuance of a certificate, before providing any information to or obtaining any information from a debtor, and before beginning a debtor education session.

Also, a provider must always provide debtor education services, including issuance of the certificate, without regard to a client’s ability to pay. See “What if I cannot afford to pay for my debtor education course?” below.

Debtor education is available for free or at a reduced rate, based on a debtor's ability to pay.

Fee waiver policies vary by provider. At a minimum, however, a debtor whose household income is less than 150 percent of the poverty level is presumptively entitled to a fee waiver or fee reduction.

The poverty level is defined by the poverty guidelines updated periodically in the Federal Register by the U.S. Department of Health and Human Services.

Please contact the instructional course provider that issued your certificate to obtain a replacement or corrected certificate.

Yes, a provider may file certificates of completion or notice of completion on behalf of a debtor. A provider may also issue certificates to debtors, who then must file them with the court.

Yes. A debtor education provider, once approved, may request approval for additional judicial districts by submitting an amended application. The amended application shall list both the additional judicial districts for which approval is being requested, as well as the currently approved districts. See “May a debtor education provider change the services it provides?” below for complete procedures.

A debtor education provider may not increase its fees without prior USTP approval. To request approval to increase fees, a provider must submit an amended application setting forth the proposed increased fees, as well as the reason for the increase. See “May a debtor education provider change the services it provides?” below for complete procedures. A provider may decrease fees without prior USTP approval.

A fee of less than or equal to $50 is presumed reasonable and does not require justification. Fees in excess of $50 must be approved in advance by the USTP by demonstrating, at a minimum, that the provider’s costs for delivering the instructional course justifies the requested fee. The provider bears the burden of establishing that its proposed fee is reasonable.

When a provider makes a material change to its services, the provider must obtain advance approval from the USTP by submitting an amended application. The following material changes require advance approval:

• The engagement of an independent contractor to provide an instructional course; Fee increases;
• Fee increases;
• Changes in the provider’s fee waiver or fee reduction policy;
• Expansion into additional judicial districts;
• Change in the instructional method of delivery (i.e., in-person, telephone, or internet), whether adding or subtracting; or
• Changes to the instructional materials or course curriculum.

To amend the application, complete only the relevant portions of the application form, including a newly executed Certification and Signature (Section 8 of the application) and any relevant appendices, and submit all documents to the USTP by encrypted electronic mail, overnight mail, or another secure method with prior approval of the USTP.

Approved providers should make every reasonable effort to accommodate debtors with limited English proficiency. Such accommodation may include providing services in the debtor’s language, or referring the debtor to an approved provider that offers services in the debtor’s language.

Individuals who have “limited English proficiency” are those who do not speak English as their primary language or have a limited ability to read, write, speak, or understand English.

No. The Bankruptcy Code requires individuals to complete credit counseling before filing for bankruptcy, subject to certain exceptions, and requires debtor education to be completed after the bankruptcy case is filed, subject to certain exceptions. Therefore, an approved provider may not offer both services to clients in the same session.

The USTP does not supply a standard curriculum. Providers should consult the Debtor Education Rule, 28 C.F.R. §§ 58.25 - 58.36, for the topics an instructional course must cover. Course materials submitted with the application will be evaluated to ensure they comply with these requirements.

Yes, an instructional course must last a minimum of two hours and cover each of the substantive topics set forth in the Debtor Education Rule.

 Although a self-study instructional course may be approved, it must include a mechanism to enable the provider to verify that the debtor is the person who completed the course and spent two hours on the course before a certificate can be issued. Additionally, the provider must be able to collect sufficient information upon course completion to permit the USTP to evaluate course effectiveness.

No. Joint filers may attend the same debtor education session. The provider must issue a separate certificate to each individual.

The ability to pay is based on the provider’s application of its particular fee waiver or fee reduction policy to the debtor’s personal financial situation. At a minimum, debtors whose household income is less than 150 percent of the poverty level are presumptively entitled to a fee waiver or fee reduction, based on the debtor’s actual ability to pay. Ability to pay shall be determined based on income information the debtor submits to the provider.

A provider shall apply its stated fee waiver or fee reduction policy to the debtor’s personal financial situation. The poverty level is defined as the poverty guidelines updated periodically in the Federal Register by the U.S. Department of Health and Human Services under the authority of 42 U.S.C. § 9902(2).

A provider shall disclose its fees, as well as its fee waiver and/or fee reduction policy, to the debtor before providing any information to or obtaining any information from a debtor, and before beginning an instructional course.

No. A provider may not represent that its fees are federally mandated or required by law, or by the Department of Justice. Approved providers must offer instructional course services without regard to a debtor’s ability to pay and must inform debtors that services are available for free or at a reduced rate, based on a debtor’s ability to pay, before providing any information to or obtaining any information from a debtor, and before beginning an instructional course.

A fee of less than or equal to $50 is presumed reasonable. If a provider believes its operating costs require fees in excess of $50 per debtor, the provider may submit to the USTP its request to charge higher fees with supporting evidence.

The USTP will consider the fees customarily charged in the industry for similar services when determining the reasonableness of a particular provider’s fees. The USTP also will consider other variables such as geographic location, the types of services the provider supplies, administrative costs, and alternate funding sources.

Yes. Persons other than the debtor may pay for debtor education, as long as such payments comply with applicable laws, regulations, and ethical requirements (such as state laws and rules concerning attorney ethics). The provider shall disclose to the debtor the fee actually charged and paid on the debtor's behalf for the debtor education session. Such payments shall not adversely affect the quality of the services rendered.

Yes. A provider must disclose clearly all fees that it charges for the instructional course, including any separate fee for the issuance of a certificate, before providing any information to or obtaining any information from a debtor, and before beginning an instructional course.

A provider must always offer instructional course services, including issuance of the certificate, without regard to a debtor’s ability to pay. See “What if I cannot afford to pay for my instructional course?” above.

A certificate may be issued only under the name of the approved provider as it appears on the USTP Web site. This requirement assists the USTP in ensuring that only approved providers issue certificates.

A provider may request that the USTP list both its legal name and its d/b/a on the USTP Web site, e.g., ABC Education Inc., d/b/a XYZ Education Services. Both names will appear on the USTP Web site and the debtor education certificates.

No. Certificates shall be issued to each debtor as each debtor completes a debtor education session. See also “May a provider issue certificates before instruction is complete?” below.

No. Certificates shall be issued to each debtor only after the debtor has completed a debtor education session. Advance certificate issuance is improper and jeopardizes the integrity of the debtor education course process. Such conduct may result in revocation of a provider’s approval to offer an instructional course in any district.

Yes. The provider may e-mail a completed certificate directly to the debtor or the debtor’s attorney, or make it available for uploading from a debtor account on the provider’s Web site.

Federal Rule of Bankruptcy Procedure 1007(b)(7) permits a provider to file certificates or notice directly with a bankruptcy court. It does not require a provider to do so, however, and a provider may continue to issue certificates to students, who then must file them with the court. If a provider does not intend to participate in direct electronic case filing, the provider should make clear to debtors and/or their counsel that they are responsible to file the certificate with the court in a timely manner.

For a provider to file certificates directly with a bankruptcy court, the provider must consult the local bankruptcy rules for that court, or contact the clerk of that bankruptcy court for instructions regarding filing. Registration terms will vary by court and will be set forth in most cases by local bankruptcy court rule. Some courts will require providers to register as CM/ECF limited filers and to file certificates or notice through CM/ECF. Other courts may use a locally-developed application for filing certificates.

To obtain more information on filing requirements for each bankruptcy court, you must visit the court's website or contact the clerk's office.

No. As bankruptcy court websites are administered by the courts, EOUST cannot provide guidance or technical assistance concerning registration with the courts, or the mechanics of filing certificates with the courts. Providers should contact each court for further information concerning registration and filing.

Lost certificates should be reprinted. To reprint a lost certificate:

• Search the CGS database by the certificate ID number.
• Input the debtor’s name, as it appeared on the original certificate, in the “Client Name” field.
• Select “Save for Reprint” and then “Create Certificate.”
• At the next screen, select “Reprint Certificate.”
• The CGS will generate a reprinted certificate and the CGS database will note that the new certificate is a reprint and bear the original certificate ID number. All of the information that was on the original certificate remains without alteration, the only difference being the word “DUPLICATE” across the document. A certificate can be reprinted in this manner more than once.

 If the original certificate contains erroneous information (such as a misspelled name or incorrect judicial district), cancel the original certificate and issue a new certificate.

• Prepare a new certificate that includes the original date and time of the instructional course, the method of delivery, and name and title of the original issuer.
• Include the debtor’s correct name and correct judicial district.
• The CGS automatically will insert the date of the new certificate.
• When printed, the certificate of completion should contain the same information as the cancelled certificate, except for the corrected name or district (as applicable) and the new certificate issue date.

To cancel the original certificate:

• Search for the certificate by issue date, ID number, or issuer name.
• Select “VIEW” and manually cancel the incorrect certificate by choosing “Cancel a Certificate” in the upper left hand red banner on the screen.
• Insert the certificate number to be cancelled and select “Continue.”
• Select “Yes, Cancel Certificate” to confirm the cancellation.

You may e-mail a request for assistance to ust.de.help@usdoj.gov. Requests for assistance received outside ordinary business hours (9:00 a.m. to 5:00 p.m., Eastern Time, Monday through Friday, excluding holidays) will receive a response the next business day.

Please e-mail ust.de.help@usdoj.gov or contact the Credit Counseling and Debtor Education Help Line, (202) 514-4100, between 8:00 a.m. and 5:00 p.m., Eastern Time, Monday through Friday, for assistance. Requests for assistance outside ordinary business hours generally will receive a response the next business day.

The provider’s CGS administrator, not the USTP, should be contacted to reset a user password. Please do not contact the Credit Counseling and Debtor Education Help Line for assistance resetting user passwords. To reset the password:

• From the CGS Home Screen, the provider’s CGS administrator selects the Agency Accounts tab. The Agency Accounts - View Accounts screen will appear.
• Locate the relevant user account and click Reset Pwd. The “Reset a User Password” screen will appear.
• Type in a new password and confirm.
• Provide the user the new password. Inform the user that, at the next login, he or she will need to change the password to one of his or her own selection.

If a CGS user tries to log in using the wrong password three times, CGS will disable the account and prohibit the user from logging in. If you receive this notification, contact your provider’s CGS administrator and request that he or she reset your user password. Please do not contact the Credit Counseling and Debtor Education Help Line for assistance resetting user passwords, or if you receive the “User Account Disabled” notification.

Providers shall maintain records for a minimum of two years to enable the USTP to evaluate whether the provider is providing effective instruction, and acting in compliance with all applicable laws and regulations. All records shall be maintained in either hard copy form or electronically in a format widely available commercially.

The reporting periods are January 1 - June 30, and July 1 - December 31 of each year. An activity report must be submitted within thirty days of the end of each reporting period.

No. You must report credit counseling data and debtor education data on separate forms. You may, however, submit both forms to the USTP at the same time.

This term refers to debtors who received instruction at reduced cost due to financial need. It does not include debtors who received a discount because they received instruction as part of a joint instructional course, or individuals who received the benefit of an attorney discount or other similar promotion. Do not include such promotions or discounts in the “reduced cost” column on the new debtor education activity report.