Empty Mandate or Opportunity for Innovation? Pre-Petition Credit Counseling and Post-Petition Financial Management Education

24 Pages Posted: 16 Feb 2006  

Karen Gross

New York Law School

Susan Block-Lieb

Fordham University School of Law

Abstract

This article critiques two of the 2005 amendments to the Bankruptcy Code - one related to pre-bankruptcy counseling and the other related to post-filing debtor education. The article questions whether, when one looks beneath the surface, these new mandates actually improve the lives of consumer debtors. There are plenty of statutory requirements accompanying these new initiatives but these particularized requirements do not address the most critical issues, including establishing the goals of the counseling and education and the content of the required programming. In addition, we fear that the mandates will simply be an added cost of entering and exiting the bankruptcy system without providing concomitant benefits. That would mean we have created an empty mandate. We also provide suggestions for improvement that are feasible and do not require statutory amendment yet again.

Keywords: bankruptcy, financial education, credit counseling, money management, legislative change and predatory practices

Suggested Citation

Gross, Karen and Block-Lieb, Susan, Empty Mandate or Opportunity for Innovation? Pre-Petition Credit Counseling and Post-Petition Financial Management Education. American Bankruptcy Institute Law Review, Vol. 13, No. 2, Winter 2005; NYLS Legal Studies Research Paper No. 05/06-14; Fordham Law Legal Studies Research Paper No. 884487. Available at SSRN: https://ssrn.com/abstract=884487

Karen Gross (Contact Author)

New York Law School ( email )

185 West Broadway
New York, NY 10013
United States

Susan Block-Lieb

Fordham University School of Law ( email )

140 West 62nd Street
New York, NY 10023
United States
(212) 636-6782 (Phone)
(212) 636-6899 (Fax)

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