Looming law may bring bankruptcies

[True_Blue]

With a tough, new bankruptcy law on the horizon, experts predict a rush of personal bankruptcies this year.

Many bankruptcy lawyers are urging clients to file now before a tougher law takes effect that would make it difficult to wipe out personal debts.

After nearly eight years of intense debate and lobbying by consumer advocacy groups and the credit card industry, the Senate passed a bill last month designed to make it harder to clear personal debts. The bill will soon be considered by the House, where it is expected to pass and reach President Bush for his signature by April. It would take effect six months later.

Bankruptcy experts don't foresee any hurdles to the bill's passage. Lawyers already are preparing for the new law by signing up for seminars and workshops. And they are contacting clients to warn them of the potential negative impact this law would have on their ability to clear debts.

more....
http://www.delawareonline.com/newsjournal/business/2005/03/20loominglawmaybr.html

[NVMojo]

1. I heard a reporter on MSNBC last Sunday urging people who needed

to file bankruptcy to do it soon.

[rogue_bandit]

2. Opportunity for organizing

Maybe helping people file would help dramatize the economic situation...including usery (a word the common citizen doesn't even know exists).

Any ideas on what beginning that process looks like?

Possible ad leader:

"Want to own a home in seven years? File for bankruptcy NOW! Next year will be too late."

[oneold1-4u]

3. Being bankrupt

I grew up thinking bankruptcy wasn't a good thing until after working for 45 years, the last couple in physical pain, and having to have numerous medical doctors, tests, medicines and finally spinal surgery which created a debt that I could not possibly ever repay on meager disability or SS. It was possible to keep a few personal items that had to be told of but card companies had no interest in. If creditors of a bankruptcy let the millionaires keep their $20 million homes (often several) they won't likely want your tent or 15' camp trailer. It can be rough for awhile but you won't have to look at bills in the mail every day. You can start to having a life again! You can buy that pound of hamburger for yourself or 20 pounds if necessary to feed your family! Don't doubt yourself so much that you are asking to be kicked around for the rest of your life!

[oneold1-4u]

5. Pointers of practicality

If you are in debt to the amount of two years of your income, you are in debt for the next twenty years and likely will only get deeper and less than a year from now you may never have bankruptcy to give you any respite.
One should be able to get all info necessary to file right here on the PC. They sell all the necessary forms (a packet) at most stationary stores but the info needed may not all be there. It is quite difficult to do alone but there are people (besides lawyers) who will help for a small fee. You must list ALL creditors and ALL assets. You can make arrangements about home, car and some other items that you need that are still being paid for.
ALL credit card and medical debts should be in arrears. It would be difficult to express the need for a bankruptcy, if you are current, even if you are eating dog food and living under an overpass!
It will soon be impossible for the average family wage earner to pay for any health insurance of value, and not have one major illness still put them into non-payable debt. I was recently placed in hospital for evaluation for one day and after medicare, my cost was more than 2 months SS checks plus total cost of prescriptions.
Make certain that you have available all the funds necessary for filing (over $200) and all the copies needed. (about 10 copies of up to 80 pages) They do ask you where you got these funds! They will allow that a friend helped you but you better not have family that could pay your bills!

[fasttense]

6. That is kind of silly.

"They do ask you where you got these funds! They will allow that a friend helped you but you better not have family that could pay your bills!"

If my sister ran-up debt I'd help her but I'd be damn if I'd take over her bills just because some bankruptcy lawyer or judge said so. How am I responsible for my sister's bills?

[Technowitch]

4. If I had huge debts, you can bet I'd be filing right now

And there was a time in my life when paying off the debts was in doubt -- all of it brought about, you guessed it, by medical bills.