We’ve all heard clients complain about the pre-filing credit counseling requirement and ask why they have to jump through this hoop when they know they’re going to end up filing for bankruptcy anyway. In many cases, we may be inclined to agree: a client facing foreclosure or repossession is in a hurry, and we know that there aren’t any other realistic options on the table.

However, a new study released by the University of Illinois Department of Agriculture and Consumer Economics and MMI, suggests that the credit counseling requirement does benefit those bankruptcy debtors after the fact. The study sought to measure two general areas: change in knowledge and change in behavior.

The educational value, based on pre-test and post-test scores, seems clear: the average score jumped from 77.1% to 85.9%. And an overwhelming percentage of participants surveyed reported that they felt more knowledgeable about their options and more confident in their ability to make financial decisions after the credit counseling briefing.

The other conclusion drawn by researchers–that credit counseling impacts future behavior–is less clear. That conclusion rests on participant reactions to a list of financial behaviors pre- and post-counseling. However, the pre-briefing questions related to actual current behavior, whereas the post-briefing survey asked which behaviors participants plannedto implement. Good intentions being what they are, we’ll need to see some data on actual post-briefing behavior before drawing any firm conclusions on that point.

Many experts believe that we may be headed for another recession. Don’t enter a second recession with piles of debts. I can counsel you on your debts. I am sure that I can be of assistance to you, a family member or a friend as we all know someone experiencing trouble these days even if we are not experiencing our own financial troubles. Please do not hesitate to make contact with me. I emphasize courteous and discrete consultations packed with plenty of information. The life impact of meeting with me in person will be unforgettable. You will enjoy a new peace of mind and a fresh hope for the future with a new roadmap for financial success that we develop together. You can email my scheduler through our website for your free 30 minute consultation at www.washingtonbankruptcy.com or e-mail directly at [email protected]. To schedule immediately, we can be reached at 253-383-1001 M-Th 9am-5:45pm and Friday 9am – 12pm.