A bankruptcy credit counseling session
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Damian commends her client for, at the least, responding to the summons and asks whether he was able to discuss how he acquired the debt with the creditors. She listens, leans slightly toward the screen and examines the information in front of her, clicking a couple times on the keyboard.

"I was doing a payout calculation to determine monthly payments for the debt-management plan," she says. "This is a consolidation of the monthly payment."

The debt-management plan is a method of repayment for consumers and creditors to minimize monthly payments and fees. The consumer makes monthly deposits to the counseling agency, and, in turn, the agency divides the funds among creditors.

Bill Brennock, also a certified credit counselor with the Consumer Credit Counseling Service, explains.

"For a rough example, say someone comes in with a MasterCard debt. The person had a 13-percent interest rate but missed a payment and now the rate is at 30 percent. The balance was at $8,000, but their credit limit is $7,500 with a minimal payment of $160 a month. The company says in order for the person to get current they must pay $900. They are asking for $900 not only to make the credit current but also to bring the balance under the credit limit.

"Under the debt-management plan, the agreement that MasterCard would agree to is to forgive the fact that the credit is over the limit and forgive the fact that it's past due, and they would lower the interest rate."

Brennock says if the debt-management plan doesn't work, other options are considered. Damian's client has somberly explained that he simply does not have the funds.

"Do you expect an increase in your budget?" she asks. "Do you expect anything back from taxes? ... You take your lunch with you? ... Is there a miscalculation? Did I miss something? ... This isn't overestimated?"

Damian toggles back to an earlier screen to see if the budget can be cut.

"Going into cigarettes, are you planning on doing something in the future for your health?" The caller mentions that it's possible but most likely later in the future.

"Do you have an attorney for your bankruptcy?" The caller has a paralegal.

Damian explains she'll be sending the client a summary packet for the counseling session. This packet includes a synopsis of the person's finances and net worth, debt-repayment analysis, an action plan, authorization of service and privacy policy. It also has referrals for medical support, education, employment and training, child care, seniors, or any other financial burden the debtor is struggling with.

"I'm going to send this out to you. Please review your budget and see where you can make some concessions."

Damian takes the headset off. She sounds astounded.

"The credit cards were up-to-date," she says. She explains if the client looked for a part-time job and reviewed his budget he may have a slight debt, but being single he could probably break even.