The New Bankruptcy Law: Should It Be Repealed?

01 Feb The New Bankruptcy Law: Should It Be Repealed?

The “New” Bankruptcy Law that passed in 2005 brought a lot of changes. Many people say that the Bankruptcy Abuse Prevention and ConsumerProtection Actis one of the worst, if not the worst, pieces of legislation by the last Congress.
Some people say thatBankruptcy Abuse Prevention and Consumer Protection Act of 2005 even contributed to the worsening of our economy.

It was supposed to cut down on people filing for bankruptcy who could afford to pay back their debts, but instead it made it harder on honest people in financial trouble to get the help that bankruptcy has to offer.

  • Harder to get yes, but still available.
While there are many hoops to jump through and new requirements that cut down on some benefits, bankruptcy is still able to help many people eliminate debts they can’t pay, reorganize debts like cars or missed house payments, and generally help people get back on track financially.

The new law was passed at the urging of creditors who were hoping that they could keep people from filing bankruptcy and force them to pay debts owed. If someone can avoid bankruptcy, it is a good idea to do so.

But the problem is: if people don’t have money to pay, they just don’t have money to pay! If they can’t pay, then not filing isn’t going to get the creditors paid off.

To read an interesting blog article that talks about how the 2005 Bankruptcy Law was passed, read this call to Democrats to ask for a repeal of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.

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Concentrating in Consumer Bankruptcy Law since 1988; Wake Forest Law School JD 1987 Law Office of Susanne M. Robicsek since 1993, Law Clerk to Judge Rufus Reynolds, US Bankruptcy Judge for Middle District of NC; Burns Price & Arneke, PA, David Badger and Associates, PA.

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