Monday, October 17, 2005

The new bankruptcy law starts today

The tougher terms now facing the bankrupt

The path into bankruptcy is now rougher, the path out is steeper, and the change could hardly come at a more difficult time for many US consumers.

An overhaul of the bankruptcy code - which takes effect Monday - means that Americans will face higher fees and higher burdens of proof before having any debts wiped clean in court.

The law aims to encourage more responsible behavior by a debt-drenched nation, and to rein in abuses of bankruptcy protection.


link

7 Comments:

Blogger indygirl said...

Grrrrrrr!

I am not happy. Not at all.

October 18, 2005  
Blogger Doug said...

If the law were truly designed to encourage more responsible behavior, some provisions would have addressed the reckless issuance of credit by the credit card companies.

I'm a debt collector and don't get too sentimental on the subject of people who get in over their heads, but the credit card companies are just making poor business decisions by giving many of these folks credit. We shouldn't be writing laws that minimize the impact of those poor business decisions.

October 18, 2005  
Blogger lemming said...

The deductible on my health insurance reminds me that I am so more safe than many other folks...

October 18, 2005  
Blogger lemming said...

Sorry - last comment should read "no more safe" - oops....

October 18, 2005  
Blogger torporific said...

Agreed, Doug. The credit card companies issue all out assaults on college campuses. One cannot enter a classroom building without seeing citibank, chase, etc. I remember thinking as a young college student, 'why would they give money to all of these people without jobs?' Of course, I eventually fell prey.

October 18, 2005  
Blogger Nölff said...

The timing on this. I feel a depresion coming on.

October 19, 2005  
Blogger Jim said...

Truth be told, I have little sympathy for people who get themselves into deep debt by racking up huge credit card balances unless those people were financially destitute to begin with. But, as usual, the government has decided to use a poor tool (the new bankruptcy law) driven by the wrong people (the credit card companies) in an attempt to get people to change their behavior.

I think that one root of America's addiction to debt is that very few of us are taught how to responsibly manage money. My parents never spoke to me about it (although that's probably a good thing, especially since my father has an issue with spending too much), and I know most of you probably encountered the same thing. What is really needed are more opportunities for kids to get educated about personal finance. How that should happen, I don't know. Perhaps high schools should offer short courses on personal finance.

October 20, 2005  

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