Bad Credit Online Magazine - Daily News and Advice on Credit, Debt and Mortgage : Bankruptcy changes are to become a law soon

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August 22, 2005

Bankruptcy changes are to become a law soon

Several previous versions of the bill mandating bankruptcy reforms had been defeated in the past. But in March, the Senate passed sweeping bankruptcy reforms. Those reforms are about to make many potential bankruptcy seekers very unhappy. Some consumers will be simply unable to afford declaring bankruptcy.

For many supporters of the bill, the most rational argument is that those who are able to pay for the whatever they bought, gambled or wasted, must pay. As simple as that. Opponents who are in the minority, argue that this bill unfairly targets poor and middle class, while leaving plenty of loopholes for the richer crowd.

This Bankruptcy Law Changes article give a pretty good idea about the changes and consequences.

With the large debt come large monthly payments that are often becoming late ones. Late payments is the fastest thing to ruin someone credit. And with the new law, many may have to start thinking about credit repair. Bankruptcy option may not be available to wipe the debt clean and get a fresh start.

Posted in Credit Repair at August 22, 2005 08:51 PM

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