Iowa State University Extension

Problem:
Individuals and families who have filed for personal bankruptcy often need to build stronger financial skills in order to prevent future financial crises. Beginning in October 2005, the law requires that these individuals participate in a financial education course before their bankruptcy can be discharged.

Response:
Iowa State University Extension developed a 2-hour course which was approved by the U.S. Trustees for those filing bankruptcy. The course focuses primarily on planning and tracking spending along with wise use of credit, and is available throughout the state. It is one of few face-to-face courses available to Iowa citizens – most of the options available are on-line courses – and it is less expensive than other options as well.

Impact:
In North Central Iowa in a 12-month period, 138 individuals received certificates for completing the “Planning to Stay Ahead” course as required in their bankruptcy process. A handful of others (people not required to take the course) also participated.

Workshop evaluations (137 received) have been overwhelmingly positive:

•  95% indicate they plan to use a budget at home in the future.

•  96% reported that they gained tools and ideas they can use to stay in control of their money in the future.

•  99% percent reported that course content was easy to understand, and that the teacher was helpful and was well-prepared.

Although the evaluation form does not specifically ask for comments, a number of participants do write comments, including:
“Great information – we plan to implement these strategies.”
“I could have listened to more! Very interesting and informative.”
“Time well spent! ”

One person specifically commented that she was glad she had taken the class in person instead of on-line, because explanations are clearer in person.

Contact:
Barb Wollan
ISU Extension Family Resource Management Specialist
311 Bank St , Webster City IA 50595
ph: 515-832-9597; fax: 515-832-9599