LA Business Daily
How did consumer credit counselors become a mandatory part of the bankruptcy process?
In 2005, it became the law in the United States that before a person could file for bankruptcy protection, they needed to complete consumer credit counseling. I am very interested in reading a case study about how they (the consumer credit counseling industry) pulled this off. I have a cursory understanding of the issue - the arguments, the changes to non-profit status, etc... so I don't want just some high level, overview. I am much more interested in the steps and arguments they used to accomplish this.
Public Comments
- I would say you need the consumer credit counseling so that the people who go bankrupt can learn ways to manage their credit better so that they don't go bankrupt again!!
- i would suggest you contact the consumer credit counsel and ask if possible you could audit one of there course -- i think if you explain this was one one of your college courses you would be more than welcome and could also gather the info you are seeking!!!
- Apparently it was the credit CARD industry rather than the credit COUNSELING industry that got this requirement into the 2005 bankruptcy reform law. The credit CARD industry (erroneously) painted a picture of people who file bankruptcy as irresponsible and lacking in financial management skills. (Actually, most people who file bankruptcy have recently experienced one of the following problems: illness, job loss, disability or divorce.) Here is an interesting article by a bankruptcy attorney that touches on this topic: http://www.bankruptcylawnetwork.com/2007/04/06/why-i-hate-pre-bankruptcy-credit-counseling/
