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One of the most controversial new bankruptcy laws that became effective in late 2005
is set forth in 11 U.S.C. 109(h). According to this new section, all
debtors must receive mandatory training in credit and budget analysis at
some point in time during the 180 days before filing a petition. And
further, only approved courses satisfy this new Code requirement.
Education in itself is not controversial, yet mandatory participation
which requires disclosure of sensitive financial information raises
legal issues.
Who will have access to one's private information? Turns out, credit
card companies sponsored the bill to require credit counseling. The same
credit card companies also sponsor debt relief foundations that are a
primary provider of approved counseling courses. As a sponsor, the paper
wall between what some think is a subsidiary, will be the only safeguard
against providing adversaries in bankruptcy the opportunity to explore
the private records of all debtors in advance.
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