The Bankruptcy Abuse and Consumer Protection Act in early 2005 with the support of the president was overwhelmingly passed both houses of Congress and major credit card companies. The law, which the radical changes in U.S. bankruptcy law was created taken to reduce the possibility that prevent consumers with high debt, try to choose to pay their debt reduction could be avoided by the court. The law has many provisions, but those who can influence consumersmost was a provision that was intended to help - the condition that the debtor seeks Credit Counseling mandatory before filing for bankruptcy.
On the surface, the only question seems laudable. Few people ever in any kind of formal training in money management, a little 'advice, even when approaching bankruptcy, the debtor could help avoid further financial problems in the future. The law was with the intention that, once grown, the prices charged to stay outBankruptcy Court in the coming years.
It did not work, that is the case, and the bankruptcy law in large part to blame. The law was not to charge for it requested the advice of credit, but a fee of $ 50 was proposed, and consumers can not afford to pay the fee may request to be waived. Only certain non-profit organizations would be authorized to prepare advice counseling bankruptcy. These requirements are in a mess in the field of consultancy, conducted the services that almost no one. RelativelySome agencies have been approved; employs those who are. The proposed tax of $ 50 if paid at all, is not sufficient to cover the costs of maintaining the offices of the agencies the lid open. Consumers are becoming their lands "advice" on the Internet or a conference call or in a large group meeting. These things can mean the legal requirements to be fair, but it is not to help the people was to help.
Credit Counseling is certainly a worthwhile effort, but only ifapplied correctly. The counselor and the client should have sufficient time to meet, discuss an overview of the consultation process and an in-depth discussion of the specific financial situation of the client. After all, if the customer does not receive information that he or she can apply directly to its own funding, the essential point of the service is rather questionable.
Instead, we have a situation where customers are poorly served and adviceThe agencies are financially without scratching. It seems unlikely that this Congress that what he had in mind when they passed the bill. That would be a problem with the debt has certainly draw on the expertise and know to look for. Those who have not been asked to choose a business consultancy that provides time and resources for the kind of methods of care, from which a client may also benefit. Otherwise, the result is a waste of time for all involved.
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