Nearly all of the more than 60,000 consumers surveyed who sought credit help since a bankruptcy law went into effect Oct. 17 cannot pay off any debt, according to a study by the National Association of Consumer Bankruptcy Attorneys.
The study - entitled "Bankruptcy Reform's Impact: Where Are All the Deadbeats?" - said the new law has provided little relief for consumers in especially tough conditions. Only 3% of those surveyed said they were able to repay debt, according to the study, which the trade group released Wednesday.
Four out of five consumers who have sought credit counseling since the law took effect are in "dire financial straits," Brad Botes, the group's executive director, said during a conference call with reporters. Those scenarios include a death in a family or the loss of a job, he said.
"It means that Congress got bankruptcy reform wrong - dead wrong," Mr. Botes said.
In its report, the group said, "The masses of expected deadbeats who were supposed to be identified under the new law and forced into debt-management plans have not materialized."
