Every day, those of us in and around the bankruptcy court face the alarming reality that during the past 10 years there has been a 96 percent increase in bankruptcy filings among those age 25 years or less. Our interactions with this age group confirm the conclusions of Prof. Robert D. Manning, an expert on consumer credit and the author of Credit Card Nation and Give Yourself Credit, that our nation's high school students are financially illiterate in too many ways, especially about credit card matters.

Recently, Chief Judge John Walker of the U.S. Second Circuit Court of Appeals noted that "many young people are caught up in our consumptive society and have poor financial role models. As a result, they easily blur the lines between 'needs and wants'." He added that "it is especially troubling that more and more young people are falling victim to credit card abuse and turning to bankruptcy as a means to relieve their oppressive debts."

In November 2002, the Credit Abuse Resistance Education (CARE) Program was founded in Rochester, N.Y., by the U.S. Bankruptcy Court for the Western District of New York and the Bankruptcy Committee of the Monroe County Bar Association to attack this problem. In live CARE Program presentations given by bankruptcy judges, attorneys and court staff members, which include the stories of real people who have had serious financial problems, students are encouraged to: (a) have one credit card and pay the balance off every month; (b) have a realistic budget that is developed with an understanding of needs vs. wants, and then live within it; (c) understand the true cost of credit and how hard it is to pay back debt at high interest rates; (d) have savings for an emergency; (e) appreciate the addictiveness of overspending and living above your means; (f) understand that maintaining consumer debt by making minimum payments is not the same as being able to afford the debt, and (g) be aware of the many consequences of credit card abuse. These consequences can include being turned down for a job, admission to graduate school, a student loan and an apartment.

Because of the overwhelming support of educators, the media and the public in the Rochester area, the CARE Program has reached more than 10,000 middle school, high school and college students. In this school year alone, presentations have been made in 26 high schools and three colleges.

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One of the many wonderful aspects of [this] program is that it allows judges to become part of the solution by helping young persons learn to manage debt before they are in over their heads.

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The success of the CARE Program has prompted educators and individuals in the Second Circuit, Administrative Office of the U.S. Courts, Federal Judicial Center, U.S. Trustee Program and the media to encourage the creation of a web site and the development of presentation materials and training tools, so that CARE Programs could be easily developed by others in the bankruptcy system. The CARE Program web site, http://www.careprogram.us, not only has important financial information for students, educators and parents to supplement the live CARE presentations, but it also has a link on how to start a program, as well as all of the program's presentation materials, that are available for downloading, including videos, overheads and a brochure.

The CARE Program also has established important national relationships, including a partnership with Next Step Magazine, a college preparatory magazine that is distributed in 18,000 high schools in 31 states that has agreed to run a series of CARE Program articles and collaborate with Dr. Manning, whose own web site is linked to the CARE Program web site.

The bankruptcy system is uniquely positioned to effectively attack this problem of financial illiteracy and abuse. Unlike many other programs that are beginning to address this problem, the system already has an army of knowledgeable and experienced bankruptcy judges, attorneys and court staff members in place who can make a practical and meaningful difference in the lives of our young people. In addition, the relationships with Next Step Magazine and Dr. Manning, the web site and the many developing programs throughout the Second Circuit and in cities like Chicago, Dallas and Reno, Nev., are creating a national identity for the CARE Program.

Those who are already a part of the CARE Program are committed to doing everything possible to encourage, support and assist new programs and to develop new materials to improve the effectiveness of CARE.

As. Dr. Manning explained:

By introducing the CARE program in local high schools and colleges, it offers a practical roadmap for unwary students who too quickly succumb to the temptations of easy credit during their most formative years. By discussing the "real world" consequences of consumer debt and offering guidance for developing personal finance skills, Judge Ninfo and the CARE program can and will effect behavioral change when it is most important‹before young people confront the possibility of filing for personal bankruptcy.

Paul W. Warren, the Clerk of Court of the U.S. Bankruptcy Court for the Western District of New York and a former chapter 7 trustee and practitioner, has this to say about being a part of the program:

Each time that I make a CARE presentation, I am left with a tremendous sense of satisfaction because I know that I have made a positive, personal and meaningful impact on the students, and I would encourage anyone working in the bankruptcy system to participate in the CARE Program in your community.

Chief Judge Walker in the Second Circuit, and the Bankruptcy Committee of the Circuit, chaired by District Judge Jed Rakoff, who is also a member of the Judicial Conference of the U.S Committee on the Administration of the Bankruptcy System, have encouraged judges to become involved in the CARE Program. Judge Rakoff has noted that "usually, judges only get involved with social problems after the problems have turned into disasters. One of the many wonderful aspects of [this] program is that it allows judges to become part of the solution by helping young persons learn to manage debt before they are in over their heads. That's why we are enthusiastically attempting to implement the program throughout the Second Circuit."

CARE is having an impact beyond the Second Circuit. John J. Hargrove, Chief Bankruptcy Judge for the Southern District of California, is leading the development of a local CARE Program. Judge Hargrove remarked that "the CARE Program hits the nail on the head! Instead of waiting until the financial damage has been done, it attacks the cause of credit card abuse. It focuses on today's young people and, through the use of testimonials and a college student-produced film, it effectively delivers the message of avoiding unnecessary credit card debt and its damaging consequences."

Many of you reading this article have children, grandchildren and other family members and friends in high school and college. Judge Rakoff once asked, "Where was the CARE Program when my children were getting ready to go to college?" With your support and participation, the answer can be, "Everywhere."

For more information about the CARE Program, please visit its web site, http://www.careprogram.us, call me at (585) 613-4200 or e-mail me at [email protected].