Heads up!! Bankruptcy law goes into effect in October

[ailsagirl]

And a heartfelt :puke:THANKS:puke: to all the DEMS who made this possible.

Bankruptcy filings rise as change in laws nears
By Matt Krantz, USA TODAY
July 26, 2005

When it comes to personal bankruptcy, many financially strapped people are deciding there's no better time than the present.

Sweeping changes to bankruptcy laws take effect in October and will make the process more onerous for consumers. That's prompting many debtors to hurry up and put their financial house in order.

The number of bankruptcy filings surged 12% in April, May and June from the same period last year, according to exclusive numbers from research firm LexisNexis. That's quite a rise, considering filings were down 2.6% during the first three months of the year, LexisNexis says.

Consumers teetering on the edge are taking the bankruptcy plunge now because the new law attempts to curb the use of Chapter 7 bankruptcies and steer people into Chapter 13 proceedings. There's a big difference: Chapter 7 forgives most debts, while Chapter 13 only extends the amount of time to pay


http://www.usatoday.com/money/perfi/general/2005-07-26-bankrupt-usat_x.htm

[niallmac]

1. I am sorry but when I think of this bill I cannot for the life of me

understand why my party once again played the hand servant to the bankers. Were they just getting by and needed help to stay solvent? That is a proven non truth. Why on earth should there not be a little friction in the dem ranks right now? Is the bankruptcy bill considered a DLC moment or am I mistaken? I don't know. Someone explain how the interests of the working poor or soon to be poorer were served with this thing.:grr:

[Dr.Phool]

2. Oh yes, it was a DLC moment

17 "New Democrats", all DLCer's in the House sent a letter to Dennis Hastert asking him to expedite it's vote on the floor so they could vote for it. They all had significant contributions from the credit card and banking industry.

My own DLC Senator, Bill Nelson (DINO-FL) voted against EVERY amendment to the bill that would have reduced the consequences on people with medical bills, troops in Iraq, etc.

[niallmac]

3. See, that just really pisses me off.

That's like treason to your own party. I can't print what I feel right now.

[sojourner]

5. I'm hoping it's the congress persons who carried out this "treason" that

have earned your ire...and not the messenger delivering the message.

Peace.

[niallmac]

7. If it wasn't for you I wouldn't have gotten this straight.

Thanks very much.:hi:

[depakid]

6. If your congress critter or Senator voted for it

work to get them out- and NEVER vote for them again.

I'll vote republican before I vote for David Wu again- more than that- I'll get as many people as I can to vote against that sorry excuse for a Dem- and human being.

[niallmac]

8. I'll have to google Wu and see he has been up to. As for dumping my rep..

I live in a state that is mostly infatuated with God Guns and Gays issues so things like a working wage, medical care, decent pubic schools just confuse the issue. I do get about one form letter a week from my reps in answer to my emails. Those Wash DC form letters are so heart felt! sarc.

[Skittles]

14. f*** voting republican

I may not vote Demoratic but I will NEVER vote for a republican. NEVER.

[sojourner]

4. "explain how the ....working poor... were served with this thing"

I got it, I got it!!!!

They will be uplifted as they fulfill their onerous burdens and earn self-respect and the blessings of God who loves the downtrodden and the poor. They will be blessed! They will be rich in good deeds! See, by saving them from defaulting on their debts the good DLC and Repuglicans are ensuring a lifetime in heaven for their lowly and sinful constituents. Thus showing a love greater than they have for themselves, who, as corporations, will still get the benefit of the doubt in their own bankruptcy proceedings and thereby secure for themselves the burdens of corruption and sin...perhaps dooming themselves to the suffering of eternal damnation...but boy will they enjoy that yacht in the meantime!

:sarcasm:

[kineneb]

11. I had a chat with a lawyer about this

and she was pissed. However, she informed me that the really poor, those making less than 200% of poverty, will be unaffected. The new law will hit those earning $60K, or so, with two incomes.

I wanted to hurry and file, but the lawyer said we should wait until Hubby is on disability, so we could file for Chapter 7 and keep our house.

[rman]

12. Don't you get it? The party does not serve the people, for the most part,

but rather serves corporations. It's there for all to see.

[JPZenger]

9. Minimum Credit Card Payments to Double

Because of a different change in Federal regulations, most people's minimum monthy payments to credit card companies will also double.

The intent is good - to try to make sure people are paying off principal on their debt instead of just getting deeper and deeper in debt. However, many people are going to get hit unexpectedly. That means the credit card companies will collect even more fees when people don't make the minimum payment.

[phantom power]

10. If their intent were good...

they would have done something like change the regs to make it harder to get *new* credit, and/or put caps on the interest rate that credit companies can charge.

Instead, they made a law that causes the consumer to get blindsided with a potentially devastating increase in minimum payments, on credit that they already have, and for better or worse obtained based on assumptions of a stable minimum payment.

[DuaneBidoux]

13. This is one of the few things I actually favor.

Yes it will smarts for a number of folks but it will make it harder to hide from reality and unconsciously slide deeper and deeper in debt. I think the single biggest effect will be to slow people's spending down asap as if you have to make double a minimum payment then you'll be aware of what you are really spending and spend less.