Memo

U.S. Department of Justice
Executive Office for United States Trustees
Office of Oversight
____________________________________________________________________________________
441 G Street, NW, Suite 6150
Washington, D.C. 20530

Voice - (202) 305-0222

February 14, 2022
MEMORANDUM
TO:

Melody Braswell
Department Clearance Officer for Paperwork Reduction Act

FROM:

Robert S. Gebhard
ROBERT
Assistant Director, Office of Oversight GEBHARD

SUBJECT:

Request for Renewal Approval by the Office of Management and Budget of the
“Application for Approval as a Nonprofit Budget and Credit Counseling Agency”

Digitally signed by
ROBERT GEBHARD
Date: 2022.02.14 15:55:34
-05'00'

This memorandum and the attached materials are submitted under the Paperwork
Reduction Act, 44 U.S.C. § 3501, et seq., to authorize the United States Trustee Program
(Program) to extend and revise the information collection request (ICR) entitled, “Application
for Approval as a Nonprofit Budget and Credit Counseling Agency” (Application). This ICR
was previously approved by the Office of Management and Budget for three years under 11050084 and is set to expire on December 31, 2022.
By way of background, the Bankruptcy Abuse Prevention and Consumer Protection Act
of 2005 (BAPCPA) enacted amendments to the Bankruptcy Code that took effect on October 17,
2005. The BAPCPA requires an individual debtor to meet with an approved nonprofit budget
and credit counseling agency to receive credit counseling and a budget analysis within 180 days
prior to filing for bankruptcy relief. 11 U.S.C. § 109(h)(1). The United States Trustee Program
(Program) must approve all nonprofit budget and credit counseling agencies (agency) that wish
to provide credit counseling services to debtors. 11 U.S.C. § 111(a)-(e). Before an agency can
be approved, the United States Trustee (UST) must review the agency’s qualifications under the
standards set forth in the statute and may require the agency to provide information needed for
this review. 11 U.S.C. § 111(b)-(c). Procedures and criteria to be used by the United States
Trustee Program when determining whether applicants seeking to become and remain approved
agencies satisfy all the statutory prerequisites are set forth in final rule. 28 C.F.R. §§ 58.12 58.24 (Rule). Approved agencies are named on a publicly available list in each federal judicial
district where they are deemed qualified to counsel debtors. 11 U.S.C. § 111(a). The application
enables the Program to solicit expressions of interest from agencies wishing to participate and to
collect the information needed to determine if an agency meets the statutory standards. 11
U.S.C. § 111.
Agencies are approved for a probationary period not to exceed six months. The Program
may approve an agency for an additional one-year period, and then for successive one-year

periods if the agency demonstrates it meets the standards set forth under 11 U.S.C. § 111 and can
satisfy such standards in the future.
The ICR as provided in the revised Application is necessary to carry out the Program’s
statutory mandate in determining whether an agency is in compliance with statutory standards
and should be approved for a six-month period or an additional one-year period pursuant to 11
U.S.C. § 111. The collected information will enable the Program to assess each applicant’s
eligibility for approval under statutory standards that include providing qualified counselors;
maintaining adequate provision for the safekeeping and payment of client funds; providing
adequate counseling with respect to client credit problems; and dealing responsibly and
effectively with other matters relating to the quality, effectiveness, and financial security of the
services it provides.
The total annual hour burden associated with the attached Application and instructions
has increased from 362 hours to 373 hours. First, the Program added the requirement that
returning applicants complete an application in full every five years. Currently, applicants may
select a “no change” response to a question. By requiring periodic restatements of information
previously provided, applicants will be more likely to closely review that information to ensure
that it is up to date and correct, thus enhancing the Program’s ability to review and approve the
applications. In addition, permitting applicants to use the currently approved “no change” option
indefinitely in their responses creates an unreasonable burden on the Program to retain
unnecessary Applications as opposed to disposing of them in accordance with a document
retention policy. The Program estimates that this modification will increase a returning
applicant’s hourly burden by approximately one hour every five years.
Second, the instructions now include a broad definition of the term website where before
there was none, to ensure that applicants fully disclose their entire presence on the internet. This
will enable the Program to better monitor applicants who may have previously undisclosed
websites offering credit counseling. The Program estimates that this modification will increase
an applicant’s annual hourly burden by only a few minutes.
Other changes that do not impact the total annual hour burden include the removal of two
questions from the application, a clarification that Applications may be submitted by secure
methods other than those set forth in the instructions, and additional minor or clarifying changes.
The following documents are contained in the attached ICR package:
1.
2.
3.
4.
5.

Supporting Statement for the Paperwork Reduction Act Submission.
Application, instructions and appendices used to collect the information.
Law or authority mandating the information collection.
60-day ICR Notice for publication in the Federal Register.
30-day ICR Notice for publication in the Federal Register.

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Your favorable consideration of this request will be greatly appreciated. If there are any
questions concerning the ICR, please contact Juliet Drake at (202) 307-3698.
Attachments

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