Does the 2006 Bankruptcy Act
Provide Opportunities for CPAs?

For corporations the 2005 Bankruptcy Act requires all schedules to be submitted prior to filing. Monthly operating reports were previously not so important. Now the U.S. Trustee monitors the reports. If they are not submitted, the case may be dismissed or converted to chapter 7. This means more work for small accounting firms.

Personal bankruptcies require a credit counseling session prior to filing and personal financial management training prior to discharge. Credit counseling must be provided by a non profit entity, but financial management training may be provided by CPAs. However, CPAs may be too high priced to compete in this market. So far, only one CPA in the country has been added to the list of approved trainers, Lamar Purvis in Fitzgerald Georgia.

Purvis notes that since so many bankruptcies were filed under the old law in anticipation of the new law, the need for this training is not immediate.

From Accounting Today, December 19, 2005. For the complete article, click on the following link: http://www.webcpa.com/article.cfm?articleid=16549&;pg=acctoday.