A toughened bankruptcy law requiring debtors to seek credit counseling is doing to little to curb the number of consumers filing for bankruptcy
It makes one wonder why.
While the new law, which took effect late last year, requires debtors to seek counseling in hopes that it will steer them toward repayment plans instead of bankruptcy court, counseling agencies said most debtors are too far in financial trouble to qualify for a debt-management plan.
No kidding, that is exactly why they are talking about bankruptcy. For the vast majority of people this is not a step taken lightly, but out of desperation. By an overwhelming majority, families are driven in bankruptcy not by unfettered spending on dinners out, and new gadgets, but by lost jobs, medical disasters, natural disasters or other calamities outside the control of the family, and counseling does nothing to help in these case.