Excerpt from inteview on WSJ Blog, The Wallet of Leslie Linfield, executive director of the Institute for Financial Literacy based in Portland, Maine. She was asked what life was like after bankruptcy:
I dug a little bit and discovered this on a credit counseling website that there are twin requirements for debtors going through bankruptcy proceedings:
- Pre-filing credit counseling briefing: Under the new law, consumers who want to file for bankruptcy must complete a credit counseling briefing, designed to inform them of their options in dealing with their debts, six months prior to filing. The course must be at least 90 minutes long and can't cost more than $50. Accredited agencies can't turn anyone away based on their ability to pay.
- Personal financial management class: The back end of the twin requirements is a
two-hour personal financial management education class that consumers
must attend before a bankruptcy can be completed, or debts discharged...The topics covered include:
- Budget development
- Money management
- Using credit wisely
- Consumer information
The need for improving financial literacy seems to be getting through to the politicians now too; Steve Pagliucca, Democratic candidate for Ted Kennedy's U.S. Senate seat, called today for a nationwide campaign for financial literacy as part of his financial reform plan, according to the AP.