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jeffh
Joined: 15 Mar 2005
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 Posted: Tue Mar 15, 2005 5:25 am Post subject: New Bankruptcy Law |
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Will this new law, The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, that congress is about to pass make it more difficult for people in debt to make deals with their creditors?
If people are unable to file for bankruptcy, it seems that the credit card companies would be less willing to work out a compromise. Any thoughts?
Thanks,
Jeff |
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topgun
Guest
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| Posted: Tue Mar 15, 2005 6:05 am Post subject: |
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this law is another example of what bush does for his friends. It was passed to make his friends rich. It will definitely make it harder to negotiate for a lower settlement amount since now the credit card companies know we can not file for bankruptcy if they push us too hard  |
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Denny
Site Admin
Joined: 19 Oct 2004
Location: Santa Cruz
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| Posted: Tue Mar 15, 2005 5:51 pm Post subject: Its sweet and sour |
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Title II - Subtitle A - Section 201 (or Penalties for Abusive Creditor Practices under Enhanced Consumer Protection ) says
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Cites circumstances under which the court may reduce a claim based upon unsecured consumer debts by up to 20 percent if the debtor can show by clear and convincing evidence that the claim was filed by a creditor who unreasonably refused to negotiate a reasonable alternative repayment schedule proposed by an approved credit counseling agency acting on the debtor's behalf. |
Now creditor will have to give debt settlement a chance. But the summary of the law says, "Cut short your expenses". This law is aimed to discourage reckless spending.
Denny |
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