Credit Counseling Requirement Is Not Serving Its Original Purpose

When the Bankruptcy laws were overhauled in 2005, the new law mandated that all individual debtors (with certain limited exceptions) complete two counseling sessions – one prior to filing (Pre-Bankruptcy Credit Counseling) and a Debtor Education Session prior to the issuance of a discharge.

Legend has it that Bush 43 thought that if someone spoke to a credit counselor prior to filing bankruptcy, it would dissuade them from filing – NOT!

All this has done is to lay on another expense (usually between $45-75 per case) and filled the pockets of about 100 companies throughout the country that won the lottery with the DOJ.

Any amendment of the law must include the removal of this requirement.