Saturday, February 6th, 2010

How did consumer credit counselors become a mandatory part of the bankruptcy process?

Consumer credit
The Commissioner asked:


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.

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3 Responses to “How did consumer credit counselors become a mandatory part of the bankruptcy process?”

Carrie Says:
February 7th, 2010 at 10:49 pm

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!!

mister ed Says:
February 11th, 2010 at 6:17 am

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!!!

rpg Says:
February 12th, 2010 at 8:20 am

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:

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