Bankruptcy still prevalent - WALB.com, Albany News, Weather, Sports

Bankruptcy still prevalent

January 11, 2006

Albany-- New bankruptcy laws are creating more work for credit counselors, but not helping many people avoid bankruptcy. The new rules went into effect in October.

They require consumers to go through credit counseling before they file for bankruptcy. At Consumer credit counseling service in Albany, none of the six hundred potential bankruptcy filers who came through since October ended up with a repayment plan. They all filed for bankruptcy.

"The options for the people coming to us by in large is bankruptcy. In other words their option is not to go on a debt re-payment plan. So it is not working from that standpoint, it is not doing what the creditors thought it was going to do," said consumer counselor Irma Whitten.

Counselors say it is best to get assistance as quickly as possible, if you feel you are in debt. The year two-thousand five saw the highest annual filing level on record at more than two-million.

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