So what was the point again? Three months later, we are beginning to see some trends:

Three months after a new bankruptcy law took effect, the overwhelming majority of debtors seen by credit counseling agencies are filing for bankruptcy instead of using repayment plans envisioned by the law's supporters.

The law requires debtors to see credit counselors before they file for bankruptcy protection. It is a prerequisite that banks and credit card issuers hoped would steer consumers away from bankruptcy court and into plans that would allow them to repay debts over a few years.

But so far, that is not happening.

The counseling agencies say most debtors are in such deep financial trouble that they cannot qualify for a debt-management plan.

"Typically, consumers are too far gone when they get to us," said Ivan L. Hand Jr., president and chief executive of Money Management International Inc. (MMI), the nation's largest credit-counseling organization.

(snip)

The pre-bankruptcy credit-counseling requirement was initiated by Sen. Jeff Sessions (R-Ala.) during the 10-year battle to enact a new law. He said in a recent interview that it was "disappointing" to learn that so few consumers have signed up for a debt-management plan. He said he intends to monitor the law's progress and was "not prepared to give up on this."

This bears out what I've been seeing as well. I have yet to see the mandated credit counseling do anything more than confirm the debtor's first instinct: that he needs to file bankruptcy pronto. All that's changed was the time and paperwork...and the explosion in filings engendered by the pre-YBK panic in October.