Is Credit Counseling Necessary? A new Government study says No.

25 Apr Is Credit Counseling Necessary? A new Government study says No.

A recent study released on April 6, 2007 performed by the General Accounting Office, has found that the credit counseling requirement of the new Bankruptcy Law is not meeting its goals. The report states: “We also found that the value of the pre-filing credit counseling requirement is not clear. The requirement was intended to provide consumers with information about bankruptcy and its alternatives so they can make informed decisions about their options.

In practice, however, anecdotal evidence strongly suggests that most consumers have no realistic alternative to bankruptcy by the time they receive the counseling. As such a wide range of stakeholders view the pre-filing counseling requirement as an administrative obstacle rather than a useful exercise. It is therefore uncertain whether the requirement is achieving its key goal of helping consumers determine whether or not to file for bankruptcy.” It seems pretty clear to me, that the credit counseling requirement is an obstacle that costs debtors time and money that they cannot afford.

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Carmen Dellutri is a proud member of the Florida Bar, and he is a Board Certified Consumer Bankruptcy Attorney, Certified by the American Board of Certification. He practices in the areas of Consumer Bankruptcy and Plaintiff's Personal Injury. He is the principal attorney at The Dellutri Law Group, P.A. The firm supports many charitable and civic causes by donating time and much needed capital to our community. Mr. Dellutri and the other attorneys in the firm routinely speak to students of all ages about various legal and societal issues.
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