Bankruptcy Bill

This may not be new, I get email newsletters from Myvesta.Org on credit/debt issues. I thought I would share it. If the tone of the article is correct, now would seem a good time to write congress about other consumer issues such as FDCPA and FCRA revision:


The New York Times <http://www.nytimes.com> reported recently that pending
bankruptcy reform may be postponed due to the events of September 11th. Some
analysts are saying that that the bill may not resurface until next year.

In March the Senate and House passed different versions of the bill and a
conference had been scheduled to iron out the differences. A final version of
the bill has not yet been approved or become law. But due to recent events, the
slumping economy, weaker consumer confidence and the bill's hard nose approach
to consumers in debt, many legislators might shy away from the bill for fear of
looking "anticonsumer."

Bankruptcy reform has been a hot button issue lately with consumer debt and
unemployment on the rise. The new bankruptcy bill will make it much more
difficult for consumers to find relief under chapter 7 bankruptcy, which
relieves most or all of a persons unsecured debts and will force more people
into chapter 13 bankruptcy which institutes a repayment plan for 3-5 years. The
bill has been under fire by many consumer rights advocates for being unfair to
those consumers who are seeking bankruptcy protection after falling on hard
times.

Bankruptcy before or after a possible reform is not a step to be taken lightly.
Many people who file for bankruptcy experience years of emotional distress along
with higher costs of living from increased interest rates on credit cards, auto
loans and mortgages. Quite often bankruptcy doesn't address the reasons why a
person was forced to file in the first place, leaving them high and dry with no
guidance only to end up in the same situation later on in life.