Bankruptcy

I Don’t Know About You, But I’m Pretty Sure I Wouldn’t Call This “Lucky”

Professor Warren recounts the story of a woman who thought herself lucky because her Social Security payment was scheduled to come in the day before her mandatory credit counseling session (required of every consumer debtor filing for bankruptcy now, thanks to BAPCPA). That way, she could pay for the session ($75) instead of eat.

Congress, if you’re paying attention, a repeal of that provision would be a grand start. It’s a ludicrous requirement because by the time it becomes mandatory it’s far too late to help anyone but the most mildly distressed debtors. Most debtors have put bankruptcy off far too long as it is. I know: you were told by the credit lobby that it just wasn’t so - that these bad debtors were out there taking advantage of your good nature, and their financial bottom line was suffering and it just wasn’t fair! And so you swallowed it - the whole “black is white” and “the sun rises in the west” spiel - hook, line, and sinker. And I’m sorry to have to be the one to tell you this, but they didn’t tell the truth.

I know. Someone lied to Congress to get their way. Shocking.

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