September 27, 2017
Clifford J. White, III Director of the Executive Office for U. S. Trustees U. S. Department of Justice Executive Office for U. S. Trustees 441 G Street, N. W., Suite 6150 Washington, D. C. 20530
Re: Credit Counseling Guidelines for Bankruptcy Debtors Affected by Natural Disasters Dear Director White,
We all watched in horror as our neighbors in Texas, Florida, and Puerto Rico suffered devastating losses of property, homes, and tragically life as a result of Hurricanes Harvey, Irma, and Maria. Many people and families now face both the emotional and financial hardships of recovering from their losses and trying to rebuild. Some will undoubtedly, through no fault of their own, have to file for bankruptcy. The National Association of Consumer Bankruptcy Attorneys( NACBA) 1 and the National Consumer Law Center, Inc.( NCLC)( on behalf of its low-income clients) 2 urge stronger relief for bankruptcy debtors in Texas, Florida, and Puerto Rico commensurate with the serious problems facing hurricane victims.
In 2005, following Hurricane Katrina the Executive Office for U. S. Trustees approved a waiver of credit counseling requirements in areas affected by the hurricane. The same steps should be taken for all current hurricane impacted areas in Texas, Florida, and Puerto Rico.
You have stated that“ even if conditions do not justify a United States Trustee granted statutory waiver of the credit counseling requirements under 11 U. S. C. section 109( h)( 2) for a district, we will exercise prosecutorial discretion in considering whether to take action to dismiss the case of a debtor who, as a result of a natural disaster, experiences difficulty in obtaining a credit counseling certificate or whose filing was delayed beyond the 180-day period following the debtor ' s receipt of credit counseling.” We believe this is not nearly enough.
No properly advised debtor would take the risk of filing a case without knowing whether the U. S. trustee will move to dismiss it, with all the adverse consequences that result from dismissal of a case. Similarly,“ prosecutorial discretion” will not prevent private trustees or creditors from moving to dismiss cases. NACBA and NCLC strongly urge that the United States Trustee Program issue a temporary waiver of the statutory requirements for credit counseling and document production for bankruptcy filers in areas impacted by the devastation caused by Hurricanes Harvey, Irma, and Maria.
1
NACBA is the only national organization dedicated to serving the needs of consumer bankruptcy attorneys and protecting the rights of consumer debtors in bankruptcy. Formed in 1992, NACBA has more than 3,000 members in all 50 states and Puerto Rico.
2
The National Consumer Law Center is a nonprofit organization specializing in consumer issues on behalf of low-income people. We work with thousands of legal services, government and private attorneys, as well as community groups and organizations that represent low-income and older individuals on consumer issues.