01 Jul Bankruptcy Filings on the rise in 2007 Part I
In late 2005 Congress sent the Bankruptcy Abuse Prevention and Consumer Protection Act to President Bush. The President signed the bill into law and everyone thought that it was the end of bankruptcy. The media hype surrounding the bill left one impression in the minds of many consumers–Bankruptcy will be gone soon, so if you were thinking about filing bankruptcy, file now. Many people did file bankruptcy after the law was signed but before the majority of the changes were implemented.
In 2006, many people did not file for bankruptcy because they were unsure whether they could still file, and, if they did how bad would it be? Statistically, the bankruptcy filings fell in 2006. The proponents behind the new law claimed this as a victory. Consumer advocates, bankruptcy attorneys and judges did not see the decrease in filings as a victory, they saw it for what it was. Simply, Congress and the President were paying back political favors that were long overdue. The commercial banks and credit card companies were pushing for bankruptcy reform for over eight (8) years.
Although the law changed, the reasons behind bankruptcy did not: People still incurred medical bills; people still lost their jobs; people are still getting divorced; and people are still losing loved ones whom they depended upon for support.
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