Arrival and Pretest
9:00-9:30 a.m.
Students and teachers arrive outside the ceremonial courtroom for a continental breakfast.
After breakfast, the students assemble in the ceremonial courtroom. While they are waiting for everyone to gather, students complete the Bankruptcy Pretest to assess their knowledge of bankruptcy and credit issues. After the pretest is completed, the judge and lawyers go over the correct responses, and answer the students' questions.
Bankruptcy Discussion
9:30-10:00 a.m.
After the pretest and discussion of the handout, the host judge may ask the students a series of open-ended questions to facilitate a discussion of bankruptcy and credit issues and to address their perceptions about bankruptcy. See Courthouse Discussion for suggestions.
Small Group Activity
10:00-11:00 a.m.
The judge/court staff--working with the participating teachers--preselect the scenario(s) that will be used in the courtroom event. For example, students are asked to read the handouts in the lesson plan and they watch the first scenario of Bankruptcy: Don't Let it Happen to You (about a young woman in major credit card debt, called First-Job Euphoria). For the discussion questions accompanying the First-Job Euphoria scenario, participants are asked to work in groups of about four. They are to discuss questions 1-4 in the small groups and then report their findings to the judge and entire group. All students discuss questions 5-9 in the large group with the judge. The entire group watches the third scenario of Bankruptcy: Don't Let it Happen to You (about the law school graduate who is seeking discharge of his debts, called Student Loan Syndrome). All of the questions will be discussed with the entire group.
Scenario 1: First-Job Euphoria
This scenario points out the consequences of abusing credit cards.
Scenario 3: Student Loan Syndrome
This scenario demonstrates the dangers that students face when they do not get the high salary that they expected would repay their student loans and credit card debts.
The judge in the video for this scenario states, "Just getting a professional degree is not a solution if you are not paying attention to what you are doing with your money." To help the students gain an appreciation of what they might earn in a chosen field, the following chart lists examples of the average salary in 10 selected fields. Students should first be asked what they think each job pays before they are told the real amount.
Salary Expectations: Keeping Them Real
The source for this information is the U.S. Department of Labor, Bureau of Labor Statistics' Occupational Outlook Web site at http://stats.bls.gov/oco/ocoiab.htm.
1. Accountant and auditors $47,000
2. Administrative assistants $33,410
3. Civil engineers $60,070
4. Doctor with a family practice $150,267
5. Farmers $43,740
6. Financial Manager $73,340
7. Lawyer $90,290
8. Police and sheriff patrol officers $42,270
9. Professors-post-secondary teachers $49,040
10. Real estate agent $30,930
Additional jobs are included on the U.S. Department of Labor web site, and students with interests in fields not mentioned in this program are encouraged to visit the site on their own time. The web site includes in-depth information on these careers, that is, the nature of the work, working conditions, earning potential, education required, and so on.
Break
11:00-11:30 a.m
Reading the Fine Print
11:30 a.m.-noon
Students are asked to read the fourth scenario A Question of Credit Card Fraud. This scenario points out some of the risks of not reading the fine print in a credit card application. After reading the scenario, the students and the judge talk about the discussion questions for this scenario.
Fine Print Scavenger Hunt
noon-12:30 p.m.
Students are provided with several credit card applications that have been selected in advance by court staff and/or teachers. They are asked to read the applications, including the fine print, very carefully and to compile a list of provisions in the application that may contain hidden fees. Examples include (1) annual fees; (2) temporary low introductory rates that are raised significantly after a certain amount of time; (3) the time span of the grace period before penalty/default fees are activated; (4) the definition of the credit card issuer's business day, and so on. The purpose of this activity is to increase students' awareness of the extra expenses that they have to pay as a result of not reading and/or understanding all of the provisions of the credit card application.
Lunch and Activity
12:30-12:45 p.m.
At this time, the participating lawyers demonstrate the actual cost of using credit cards. Using the appropriate calculations, they show how making only the minimum payments on a credit card each month results in the consumer paying significantly more (sometimes as much as two or three times) the original price of the item.
Summary Exercise
Your Credit Rating: Maintaining the Green Line Between You and Bankruptcy
12:45-1:15 p.m.
Participating lawyers show the students a credit report of a fictitious person with an average credit rating. This average person is someone who has had a few problems with credit in the past. The lawyers use this time to explain what a credit report is, how it works, and what its function is in a person's life. The lawyers use the credit report to explain the person's credit rating, what the person can do to improve his/her credit score, and what factors (for example, loss of job, divorce, excess credit card spending) can result in a lower credit rating--including events that may compel someone to file for bankruptcy.
Break
1:15-1:30 p.m.
Consequences of Filing for Bankruptcy
1:30-1:45 p.m.
The lawyers explain the short- and long-term consequences of filing for bankruptcy, particularly its adverse impact on a person's credit history. They conclude by distributing a handout on how to maintain good credit and discussing ways to establish and maintain good credit and how to avoid bankruptcy.
Recognition and Dismissal
1:45- 2:00 p.m.
Judges distribute recognition certificates to students, teachers, and volunteer attorneys. Students have pictures taken with judges.
2:00 p.m.
Students are dismissed.