Bankruptcy Counseling Law Doesn't Deter Filings

Published on:
12 September 2006 at 10:20 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00034920-bankruptcy-counseling-law-doesnt-deter-fi/

By Caroline E. Mayer, Washington Post

Three months after a new bankruptcy law took effect, the overwhelming majority of debtors seen by credit counseling agencies are filing for bankruptcy instead of using repayment plans envisioned by the law’s supporters.

The law requires debtors to see credit counselors before they file for bankruptcy protection. It is a prerequisite that banks and credit card issuers hoped would steer consumers away from bankruptcy court and into plans that would allow them to repay debts over a few years.

But so far, that is not happening.

For this complete story, please visit Bankruptcy Counseling Law Doesn’t Deter Filings.