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Business is picking up at the Consumer Credit Counseling
Service office in Boca Raton, Fla., these days, thanks in large
part to a requirement in the new bankruptcy law that requires a
debtor to receive credit counseling before he or she can file for
bankruptcy.
For many of these debtors, this
will be their first experience with a credit counselor or any other
type of financial professional. Most of them have no idea what to
expect, what questions they'll be asked, what preparations to make.
They're frightened, perhaps angry and unhappy about sharing their
financial private lives.
"People are very guarded about their finances,"
says Jessica Cecere, president of Consumer Credit Counseling Service
of Palm Beach County/Treasure Coast of Florida Inc.
Certified credit counselor Ana Mesa agrees. "You'll
find a few who are a little hesitant. Toward the end they will open
up."
Although the counseling conversations can be difficult
and sometimes tragic, most counselors are eager to help and glad
to know that they've made a positive difference for consumers suffering
through hard times.
"I love my job," says certified credit counselor
Judy Damian. "I feel when I help someone or guide them to their
goals it's rewarding; it's wonderful."
Damian agreed to let a Bankrate reporter sit in on
one of her sessions to provide consumers with an example of what
they might face if they are forced into bankruptcy counseling. Bankrate
was not provided with any identifying information about the consumer
who was calling.
Damian's work begins when she is alerted that her
client is on the line. She pulls up an in-house database on her
computer, dons a headset and listens intently as she receives information
from the customer service representative about the client.
When the caller is connected, Damian introduces herself,
providing her full name and title. "I want to go over some
information with you," she says.
She reads from a script in a black binder, first explaining
the new law's requirement that the client get a certificate showing
he completed the counseling in order to file for bankruptcy.
During the explanation, Damian notes that she is not
an attorney and cannot provide legal options. She listens as her
client acknowledges this understanding and then moves on to explain
the consumer credit counseling services.
Damian describes the two disclosure forms involved.
The "authorization of services" document is an agreement
with the client stating which services will be provided and how
they will be provided. It also addresses credit reports and debt-management
plans. The privacy policy outlines the discretion taken with the
client's personal information. Damian asks for the client's mother's
maiden name as a confirmation that he has agreed to the forms.
"What has caused you to make this decision to
file for bankruptcy?" she asks. She turns away from the screen
and concentrates on her caller's explanation. In a resolved, yet
despondent, tone, the client explains: a co-signed car loan with
a relative who defaulted, left the client with a large debt.
"What we're going to do is go over a payment
plan," Damian says. "We're going to review the budget,
the creditor information, balance, and the length and time to pay
off the debt to see if the debt-management plan is available for
you."
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