EOUST Releases Final Rules for Bankruptcy Counseling and Debtor Education

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On Wednesday, March 13, 2013, the Executive Office for United States Trustees (“EOUST”) released its long-awaited final rules for pre-bankruptcy counseling and post-filing debtor education. The regulations update procedures and criteria United States Trustees (“USTs”) shall use when determining whether applicants seeking to become and remain approved as: (1) nonprofit budget and credit counseling agencies (“credit counseling agencies” or “agencies”) (the “Pre-Bankruptcy Counseling Final Rule”); and (2) providers of a personal financial management instructional course (“providers”) (the “Post-Filing Debtor Education Final Rule”) (collectively the “Final Rules”), satisfy the relevant bankruptcy code requirements. The Final Rules each take effect on April 15, 2013.

In many respects, the Final Rules adopt the provisions of proposed rules issued for comment in 2008, and each includes several virtually identical provisions. In addition, the EOUST announced it intends to add new provisions not previously included in the proposed rules. Because they were not discussed in the proposed rules, EOUST will publish another Notice of Proposed Rulemaking requesting comment on the proposed provisions.

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Topics:  Credit Counseling, Debtors, EOUST, Financial Adviser, Trustees

Published In: Bankruptcy Updates, Consumer Protection Updates, Finance & Banking Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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