Maintain your old Siemens Hipath system

New Bankruptcy Law ? Where?s the Consumer Protection?

On April 20, 2005, President Bush signed into law the Bankruptcy Abuse and Consumer Protection Act, a piece of sweeping legislation that brought about the most sweeping changes in personal bankruptcy law in the last quarter century. This bill, which takes effect in October 2005, passed with the overwhelming support of both parties of congress, claims, through its very name, to offer "consumer protection." Does it? How are consumers "protected" by this bill?

The purpose of the new legislation, is to eliminate "bankruptcy of convenience". Sponsors of the bill allege that most consumer bankruptcy cases involve irresponsible spenders who have shopped or gambled their money away and now do not wish to pay their creditors. They rightly point out that bankruptcy costs the credit card companies billions of dollars each year and that those costs are passed on to consumers in the form of higher interest rates. By making it harder for those with problem debt to file for bankruptcy, legislators say that more people will pay their bills, the credit card companies will save billions of dollars, and the resulting savings will be passed on to consumers in the form of lower interest rates.

The bill is lengthy, but key points are as follows:

  • Those considering bankruptcy will have to pass a "means test." If their income is above a certain threshold, they will not be able to file under Chapter 7 of the Federal bankruptcy code, which wipes out debt and gives the debtor a fresh start. Instead, they will have to file under Chapter 13, which establishes a five year repayment plan.
  • There are no provisions in the law for debt problems caused by job loss, illness or other traumatic events, despite studies that show that these are the cause of most bankruptcy cases.
  • Attorneys will now be responsible for the accuracy of paperwork filed by their clients. This will probably result in fewer bankruptcy attorneys, with those that continue to practice raising their fees substantially in order to offset their additional liability.
  • In short, most consumers are no longer protected from job loss or illness by being able to file under Chapter 7 and they will have less help from competent attorneys due to the new liability provision of the bill. There is little to "protect" consumers in the Bankruptcy Abuse and Consumer Protection Act. The sole benefit for consumers resulting from this bill will be lower interest rates and fees from the credit card companies, who will save billions of dollars as a result of this legislation. Of course, should the credit card companies choose to keep the savings, rather than pass them on to their customers, then consumers will be left with no benefit or "protection" at all.

    ┬ęCopyright 2005 by Retro Marketing.

    Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a site devoted to debt consolidation and credit counseling, and HomeEquityHelp.com, a site devoted to information regarding home equity loans.

    In The News:


    Warning: simplexml_load_file() [function.simplexml-load-file]: http://feeds.skynews.com/feeds/rss/world.xml:1: parser error : Document is empty in /home/infob/public_html/includes/rss.php on line 2

    Warning: Invalid argument supplied for foreach() in /home/infob/public_html/includes/rss.php on line 9


    tikatoshop.it

    Erfahrungen mit Pallhuber Wein
    Agen Bola SBOBET Terpercaya

    Travel in comfort and at your leisure with CT Airlink Limousine & Car Service for top quality private transportation and exceptional customer service. We operate Sedans, SUVs & Vans for CT Car Services to covering all Connecticut airports including Car Service from CT to Newark Airport , Mohegan Casino Uncasville CT, Foxwoods Casino Mashantucket CT, Manhattan Cruise Terminal NYC, Brooklyn Cruise Terminal NYC and Bayonne Cruise Terminal NJ. CT Airlink hire licensed and friendly chauffeurs who have in-depth knowledge of the Areas.

    What is Bankruptcy?

    Personal bankruptcy is a legal way to give people with... Read More

    UK Debt When Moving Abroad

    The idea of moving abroad to escape debt seems to... Read More

    Two Ways To Debt Relief

    There are many debt relief programs out there both off... Read More

    Debt Handling Solutions

    Sometimes debt can seem overwhelming. In those instances, or even... Read More

    5 Options Toward Debt Relief

    If you are in debt, well over your head in... Read More

    Turning Bad Debts into Good Debts through Investing Fundamentals

    If you've ever earned enough money to put some aside,... Read More

    Christian Debt Consolidation ? Feel Comfortable About Managing Your Debt

    Many Christians feel uncomfortable with the notion of being in... Read More

    Debt Management Systems

    What is a debt management system, and when do you... Read More

    Help to Get Out of Debt

    Debt Help is the stepping stone to debt elimination and... Read More

    Student Loans Can?t Be Swept Away Through Bankruptcy

    Bankruptcy is in the news these days, as Congress has... Read More

    Bankruptcy: Who is to Blame?

    If you are considering bankruptcy as a solution to your... Read More

    Credit Counseling or Bankruptcy: Which is Best for You?

    People often get to a place where they simply can't... Read More

    Credit Card Debt Elimination

    Credit card debt elimination can be done with a good... Read More

    Debt Settlement

    What is debt settlement?Debt Settlement is a process to settle... Read More

    Is Independence Overrated?

    Happy Independence Day from The Money Motivator!If you don't celebrate... Read More

    Corporate Debt Management ? Perspective on the Why

    Entrepreneurs have a tough time in their formative years. They... Read More

    5 Methods Toward Reducing Your Debt

    Decreasing your debt is paramount to having a good credit... Read More

    Bankruptcy: What the New Law Means to You

    On April 20 of this year, President Bush signed a... Read More

    Use A Debt Checklist To Examine Where You Are

    A Debt Checklist allows you to look at items and... Read More

    The Simple $10 Debt Elimination Solution

    Ask a friend what resolutions they made for 2004 and... Read More

    The Debt Free Lifestyle

    Many people have been taught that you cannot get ahead... Read More

    Five Hot Tips To Get Out Of Debt Forever

    The financial and psychological burden of being in debt causes... Read More

    Eight Ways to Consolidate Debt

    Next to winning the lottery, a debt consolidation loan is... Read More

    Bankruptcy Reform

    There are some new bankruptcy laws going into effect before... Read More

    Bankruptcy As An Option

    If your financial worries are preventing you from sleeping at... Read More