Senate Passes New Bankruptcy Law

The United States Senate passed a law on March 10, 2005 that changes the bankruptcy laws in America. It is expected that the House of Representatives will look to pass the same bill in April, which will send it to President Bush for his signature. Since it is well known that President Bush will sign the bill into law, a new bankrupcty law is just one step away from ratification. This law makes it much harder for Americans to file Chapter 7 bankruptcy. So for those of you trying to decide whether to file bankruptcy in the next few weeks, realize you may not have the same options in a couple of months time.

This bill is a pure win for the credit card companies. Since the bill was written by credit card company lawyers, you can imagine how advantageous it is to the credit card industry. It means that Americans will pay their earnings to creditors for many years to come, with little help from the U.S. government. Of course, creditors say these are bills charged up by the debtors. But since the credit card industry is one big legal trap, it amounts to the federal government helping bankers and lawyers trick average citizens out of their money. As I always say, if a person has been paying their minimum monthly payment for a few years, the creditor made a huge profit on their original loan years ago. That applies even if a debtor files for Chapter 7 bankruptcy.

The real shame is that 50% of Chapter 7 bankruptcies happen due to medical and health issues. With the loss of jobs overseas and the subsequent loss of health insurance, many Americans are slipping into debt to try to pay their medical bills. Twenty percent of bankruptcies come from single mothers who children have deadbeat fathers. In other words, the mother filing bankruptcy is not to blame, but is the victim of an ex-husband who refuses to pay his debts to his children. The new law will leave the mother on the hook to the credit card industry.

Now is the time to do your homework when looking for debt consolidation loans and other consumer credit counseling advice. It looks like the public sector is no longer a friend of the consumer, so you have to look at the private sector to help you out of your troubles. Do your research. Choose wisely. There are ways out of your financial crisis, but one of the most used options just got undermined by the politicians in control of legislation at the moment.

You can read more about personal finance and debt issues at the Debt Consolidation blog.

More Resources

Unable to open RSS Feed $XMLfilename with error HTTP ERROR: 404, exiting

More Debt Relief Information:

Related Articles

Mr. Cheapies Frugal Budget Tips
So you feel like a hamster spinning your wheel? The faster you run, the faster the wheel spins. Just when you get a raise, you notice the price of hamster wheels jumps!Mr.
Bankruptcy Abuse
Bankruptcy is little more than a smack on the hand these days. Creditors are certainly not going to look at you as a wise credit risk after bankruptcy, but that will probably not stop them from extending credit to you anyways.
Bankruptcy Reform: Designed to Protect Big Business
Who will benefit from the new bankruptcy reform laws? The financial services industry and other big business groups, that's who.These groups contributed millions of dollars to elect Bush and other Republican candidates in 2000 and 2004, with the goal of overhauling the bankruptcy system.
How to Deal with Bill Collectors
So you've screwed up. You're drowning in debt.
Budgeting and Debt Management
Debt management (specifically unsecured) is the first step to taking control of your money! Add a household budgeting plan and you've got a powerful tool for money management.Together, budgeting and debt management build financial security and independence.
Credit Repair? Its All Up to You
Log onto to a search engine such as google.com and type in the term credit repair.
Bankruptcy As An Option
If your financial worries are preventing you from sleeping at night, then you may have considered bankruptcy in hope of a little relief. Usually, consumers only turn to bankruptcy if there is no other hope for them to get out of debt.
Personal Debt Reduction Practices
Personal debt reduction practices, the steps people take to relieve the debt in their lives and to become more financially free, are a hot topic among financial circles. American spending habits are producing more people who are deeper in debt rather than people trying to achieve financial freedom.
Different Ways Of Dealing With Debt
Bills, creditors, debt collectors. Are you yearning for the days when all you had to worry about was the money in your piggy bank? If so, you are far from alone.
Getting Past The Idea Of Budgeting & Saving Money
I'm sure you'll agree that budgeting, saving money, and eliminating debt are very appealing ideas. If effectively tackled, these goals can secure your financial status for the future, and allow you to live a comfortable, debt-free life.
Pay Off Your Student Loans and Reduce Your Debts
Financing a college education is one of the more expensive debts you may incur. Student loans can take years or even decades to pay off.
Credit Repair - Understanding The Basics
What is Credit?Credit means that you are using someone else's money topay for things. It also means that you are making a promiseto repay the money to the person or company that loaned youthe money.
Bankruptcy - Your Fresh Start
Most American consumers are living too close to the edge. They are carrying too much credit card and mortgage debt and have too little in the way of savings.
Bad Credit Home Loan To Get You Out Of Debt
A "bad credit home loan" can help you climb your way out of debt and get you started back on the road to upstanding, good credit. There are many lenders who are willing to make bad credit home loans to you - a loan based on your equity in your home even if your credit has slipped or isn't as perfect as it could be.
The Bankruptcy Code Acknowledges the Validity of the Homestead Exemption
Many times the subject of bankruptcy seems baffling in its complexity. Actually the basic principals of bankruptcy are fairly simple even though the federal statuses on bankruptcy are extensive.
Should You Invest In Savings Or Payoff Your Debts?
I have faced this financial question 8 years ago and recently I have friends asked me this same question. I think I should write it up so that it may help some of you that having the same situation.
Eliminate Your Credit Card Debt, But How?
Can a debt consolidation loan eliminate your credit card debt? A consolidation loan might (or might not) be the key. There are several things you must consider when making the choice to consolidate debt using a debt consolidation loan.
The Credit Card Debt Termination Scam
"Legally terminate credit card debt! You can be debt-free in 4-6 months!" Advertisements like this are for a new type of program that has spread via the Internet over the past few years. It's called "Credit Card Debt Termination," and victims are paying $1,000s for this bogus service.
The Five Most Popular Questions About Bankruptcy
WILL MY CREDITORS STOP HARASSING ME?Yes, they will! By law, all actions against a debtor must ceaseonce bankruptcy documents are filed. Creditors cannot initiateor continue any lawsuits, wage garnishees, or even telephone callsdemanding payments.
Debt Free and Carefree
Are you still clearing a mountain of debt amassed last Christmas or even during last year's summer holiday?For those of you who make financial plans, who budget and save, you can skip this article. For those who get a little carried away, who regularly spend more than they can afford, this article is for you.