Out of the frying pan and ...

Brave new world for credit counselors

By: Jim Lovel, Atlanta

The National Foundation for Credit Counseling (NFCC) has hired a PR firm to create a national print campaign scheduled to launch in September and television spots set to begin early next year. ___________________________ UST begins process of approving credit counselors

The United States Trustee Program announced today that on July 5, 2005 it will begin accepting applications for approval as a budget and credit counseling agency or provider of a financial management instructional course for bankruptcy filers, as defined in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. Application forms and related materials are posted on the Program's web site at www.usdoj.gov/ust. For additional information, applicants may contact the Program at (202) 514-4100. The Program, which has 21 regions and 95 field offices, does not cover Alabama or North Carolina.

Under the new law, enacted April 20, 2005, all individual debtors the file on or after October 17, 2005 must undergo credit counseling within 6 months and complete a financial management instructional course after filing. With certain exceptions, an individual is not eligible to file bankruptcy without completing credit counseling, and is not eligible to receive a discharge without completing a financial management instructional course.

The new law directs the U.S. Trustee to approve budget and credit counseling agencies and providers of financial management instructional courses according to its criteria. It also directs the Clerk of the Bankruptcy Court to maintain a publicly available list of U.S. Trustee-approved budget and credit counseling agencies and financial management instructional courses.