The U.S. General Accountability Office recently issued a report of the effectiveness of the pre-bankruptcy credit counseling required by the changes to the Bankruptcy Code in 2005. You can read the report here.
SURPRISE! The GAO found that the effectiveness of this required credit counseling is NOT CLEAR!
On June 1, 2007, the Fordham University School of Law in New York City sponsored a roundtable discussion on the effectiveness of the pre-bankruptcy credit counseling required by the revisions to the Bankruptcy Code passed in 2005. The roundtable attendees were determined by invitation only and consisted of Bankruptcy Judges, representatives from the U.S. Trustee's Office, the IRS, the Federal Trade Commission, the National Consumer Law Center, the Center for Responsible Lending, several consumer credit counselors and three trade organizations, law professors, and Ph.D's in consumer and commercial law. The author of this article was the one and only consumer bankruptcy lawyer was invited to the discussion.
Bankruptcy and the credit counseling requirement - what is the difference between the credit counseling required before I file for Chapter 7 or Chapter 13 and a debt management plan (DMP)?
The revisions to the bankruptcy code passed in 2005 require that before you file a...