A program for bankruptcy filers.

The Challenge
The two Ohio Bankruptcy Courts were among the top 10 in the country for number of filings between July 1, 2004 and June 30, 2005. During that time there were over 95,000 bankruptcies filed, 99% of which were non-business cases, according to the U.S. Bankruptcy Court. In fact, Ohio had the 8 the highest rate of bankruptcy filings in 2003. Many Ohioans have been forced into bankruptcy for a variety of reasons. Click here for more information (link opens up in a new window).
 

Ohio families and households who file bankruptcy are looking for a New Start. However, the Bankruptcy Abuse and Consumer Protection Act of 2005 changed the rules for consumers and their attorneys. As of October 17, 2005, a means test is used to determine which kind of bankruptcy (Chapter 7 or Chapter 13) consumers can file and which debts can be discharged. Consumers must also get credit counseling before they can file and take a financial education class before they can discharge their debts through bankruptcy.

OSU Extension's Response
Our New $tart for Financial Success (link opens in a new window) is a program for bankruptcy filers. New $tart fulfills filers’ requirement for pre-discharge financial education.

Other institutions offer such courses, but Extension educators are experienced teachers trained in adult education techniques and in personal finances. Extension has a long history of offering unbiased, research-based information, and these classes are part of that tradition.

The two-hour classes are designed to give basic information on Spending Plans, Money Management, Wise Use of Credit, and How to Get Consumer Information.

Fees for the classes themselves, including take-home materials, range from $35 to $60, depending on the location. Each class is open to anyone -- even those not undergoing bankruptcy -- although pre-registration is required. Participants who cannot afford the fee must present some sort of proof of low income, such as evidence of participation in a means-tested government program such as Medicaid, the Food Stamp program, or Temporary Assistance to Needy Families (TANF).