Debt Consolidation

Custom Search

Debt Consolidation
Debt Relief
The Real Cost
Debt Negotiation for
Low Cost Debt
The Easiest Way
Debt Consolidation Loans
The UK's Growing
Debt Consolidation Loan
Got Debt -
Why an Alternative
Student loan consolidation:
Being Informed About
Consolidation loans for
Debt consolidation loans
Unsecured consolidation loans:
Credit Card Debt
Why You May
Student Loan Consolidation,
Debt Stress, The
Loans for bad
Avoid the Trap
Debt Management Brings
Term Life Insurance:
Debt relief 101:
Debt consolidation home
Correcting Your Debt
Debt - Strategically
15 Ways Average
Debt Consolidation or
Debt Consolidation 101
Guide to free
Guide to online
Debt Handling Solutions
Consolidation Loan Student
Get Out Of
Student Loan Debt
Debt Consolidation
Debt Relief
Credit Counseling Congress Offers No Details in New Law
by Charles Essmeier
The recently passed Bankruptcy Abuse and Consumer Protection Act was hailed as a breakthrough in bankruptcy law. Passed with bipartisan support in Congress and signed enthusiastically by President Bush, the law creates sweeping changes in debt la

The recently passed Bankruptcy Abuse and Consumer Protection Act was hailed as a breakthrough in bankruptcy law. Passed with bipartisan support in Congress and signed enthusiastically by President Bush, the law creates sweeping changes in debt law and will make it much more difficult for debtors to have their obligations swept away by the courts. A major requirement of the new law will require that anyone considering filing for bankruptcy to first undergo credit counseling. The idea is sound; anyone with problem debt can probably benefit from some discussions about money management. Theres just one problem Congress failed to include any details in the bill about what, exactly, constitutes credit counseling.

The credit counseling industry, which includes for-profit as well as nonprofit organizations, has been through some hard times lately. The Federal Trade Commission has been investigating some firms that have claimed to be nonprofit but were actually steering their clients into pricey debt consolidation plans run by for-profit affiliates. These high-profile cases have left a dark cloud hanging over the industry. With the new legislation set to take effect this October, many consumers have questions about the nature of the counseling requirements. Who will pay for it, and what sorts of fees are acceptable? The bill doesnt say whether the debtors themselves or their creditors will pay the counseling fees or how much the service should cost. The law only states that the fees must be “reasonable” and that the services should be available even if the debtor cannot afford to pay. The thought of being forced to provide counseling to customers who cannot pay has justifiably angered the counseling industry. Even nonprofit agencies have overhead and typically charge some sort of fee.

Who qualifies as a counselor? As “credit counselor” is a vague term with no real legal meaning, anyone might be able to place a sign on a building and call himself or herself a credit counselor. Is that what Congress had in mind? The US Trustee Program is in charge of making all of these determinations, and the department is said to be compiling a list of “approved” agencies. Presumably, the Trustees will also be examining these other issues and providing guidelines before the law takes effect. In the meantime, both debtors and counselors are concerned as thousands of Americans will be seeking advice for their debt problems come October. By then, with a little luck, consumers with problem debt will have some way of knowing whom they should call before filing for bankruptcy.

©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including, a site devoted to establishing credit, debt consolidation and credit counseling, and, a site devoted to information regarding mortgages and home equity lines of credit.

The site is not responsible for any content in it. E-mail: alldir[at]gmx[dot]com
debt consolidation, home loan, mortgage, debt free, debt help, refinance, equity loan, unsecured, secured debt, bankruptcy, credit card , bad credit, payday, cash advance, cash settlement, line of credit, student loan, interest rate, borrow money, car loan, adverse credit, compensation, quote, credit score, consolidate debt Scottsville Van Wert Social Circle city (pt.) Gordon township Superior town (pt.) Bayview town The Village of Indian Hill Balance of Wyoming County Roscoe Mechanicsville borough Union township Dennis town Graham township Couderay village Trumansburg village Greenville Santa Fe Springs Red Cliff town Miles township Crosby township Friendsville borough Alden township Sanborn Oconomowoc Lake village Balance of Elko County Tulare township Watertown Livonia village Sharon township Columbus USA UK Australia Canada Tanzania Jersey Uganda Aland Viet Nam Iceland Mozambique Andorra Iraq Northern Cyprus Buteshire Armagh Berwickshire Kinross Denbighshire Caithness Fife Inverness-shire Radnorshire West Lothian Texas (TX) West Virginia (WV) California (CA) Mississippi (MS) Ohio (OH) South Dakota (SD) Hawaii (HI) Louisiana (LA) North Carolina (NC) Maine (ME) Northern Mariana Islands (MP) Ohio (OH) Vermont (VT) Mississippi (MS) Kansas (KS) American Samoa (AS) Florida (FL) Mississippi (MS) Oregon (OR) Nebraska (NE)