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June 13, 2008

US Trustee Studies Financial Management Programs

Chapter 7 and chapter 13 debtors are required to complete a postpetition Financial Management Course before entry of the discharge.  The US Trustee has conducted a study of the effectiveness of the program and has concluded that it is pretty good (my non-bureaucratic label).  You can get the full report here. 

According to the report 97% of the debtors in the study "expressed a high level of satisfaction with the curriculum."  Half reported their "intention to change at least one financial practice."  There was not, however, substantial improvement in "knowledge and financial practices."  The report speculates that this is "likely due to pre-existing knowledge regarding the topics measured."  Huh?  They didn't learn more because they already knew what was measured? 

The 97% is good news.  It is widely believed in the lofty tower that the pre-petition counseling is a waste of time and money which I have no doubt it is.  It would be nice to see some hard numbers though. 

June 13, 2008 in Current Affairs | Permalink


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