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 .