Bankruptcy doesn't have to be something bad.
It can actually be the start of something good.
Your situation is unique, and it's personal.
Your attorney should be as well.

Is Credit Counseling Effective?

In 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act was passed, making it much more difficult for debtors to file for Chapter 7 debt discharge. In part, this law was created to stop what lawmakers perceived to be frivolous spending habits that were backed up by a bankruptcy system that did not hold over-spenders accountable for their actions. Not only did the law make the bankruptcy process more stringent, it also included a mandatory credit counseling requirement. However, as the Government Accountability Office has shown, this may not have been the best solution.

For more information regarding the process of bankruptcy and what it takes to file for Chapter 7, contact the Birmingham bankruptcy lawyers of Greenway Bankruptcy Law, LLC, at (205) 324-4000 today.

Problems with Credit Counseling

One of the major problems with the addition of a mandatory credit counseling session prior to filing for bankruptcy is that credit counseling may not very useful for many debtors. This additional step was used as a sort of required education for those who were considering bankruptcy, hopefully preventing them from actually needing to turn to the courts for debt discharge or payment plan options. According to the Government Accountability Office, there are some serious flaws with this system. Problems with credit counseling include:

  • Insufficient means to track the usefulness of the credit counseling requirement
  • A need for better analysis of the impact of credit counseling on debtors’ spending habits

Contact Us

While credit counseling provides a useful service for some to work their way out of debt, many debtors see this additional step as an unnecessary roadblock towards the larger goal of actually filing for bankruptcy. To learn more about your options during the bankruptcy process, contact the Birmingham bankruptcy lawyers of Greenway Bankruptcy Law, LLC, by calling (205) 324-4000.

"When I had my power cut off because I just didn't have the money to pay the power bill, a friend suggested I call Paula Greenway. From the moment I walked in her office I felt like a burden was lifted from my shoulders."
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"I would just like to say that I was impressed by the staff of Greenway Bankruptcy Law, LLC and their attention to professionalism. They made the bankruptcy process not only pleasant but simple."
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Greenway Bankruptcy Law, LLC
505 20th St N #1220
Birmingham, AL, 35203
Phone: (205) 324-4000
Tuscaloosa: (205) 737-3350
Gadsden: (256) 467-6650

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Greenway Bankruptcy Law, LLC All rights reserved. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. The following language is required pursuant to Rule 7.2, Alabama Rules of Professional Conduct. No representation is made that the quality of legal services to be performed is greater than the quality of legal services performed by other lawyers. This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.

Greenway Bankruptcy Law, LLC 505 20th St N #1220, Birmingham, AL, 35203 | Phone Number: (205) 324-4000 |  Directions | Paula Greenway+