Senate Passes New Bankruptcy Law

The United States Senate passed a law on March 10, 2005 that changes the bankruptcy laws in America. It is expected that the House of Representatives will look to pass the same bill in April, which will send it to President Bush for his signature. Since it is well known that President Bush will sign the bill into law, a new bankrupcty law is just one step away from ratification. This law makes it much harder for Americans to file Chapter 7 bankruptcy. So for those of you trying to decide whether to file bankruptcy in the next few weeks, realize you may not have the same options in a couple of months time.

This bill is a pure win for the credit card companies. Since the bill was written by credit card company lawyers, you can imagine how advantageous it is to the credit card industry. It means that Americans will pay their earnings to creditors for many years to come, with little help from the U.S. government. Of course, creditors say these are bills charged up by the debtors. But since the credit card industry is one big legal trap, it amounts to the federal government helping bankers and lawyers trick average citizens out of their money. As I always say, if a person has been paying their minimum monthly payment for a few years, the creditor made a huge profit on their original loan years ago. That applies even if a debtor files for Chapter 7 bankruptcy.

The real shame is that 50% of Chapter 7 bankruptcies happen due to medical and health issues. With the loss of jobs overseas and the subsequent loss of health insurance, many Americans are slipping into debt to try to pay their medical bills. Twenty percent of bankruptcies come from single mothers who children have deadbeat fathers. In other words, the mother filing bankruptcy is not to blame, but is the victim of an ex-husband who refuses to pay his debts to his children. The new law will leave the mother on the hook to the credit card industry.

Now is the time to do your homework when looking for debt consolidation loans and other consumer credit counseling advice. It looks like the public sector is no longer a friend of the consumer, so you have to look at the private sector to help you out of your troubles. Do your research. Choose wisely. There are ways out of your financial crisis, but one of the most used options just got undermined by the politicians in control of legislation at the moment.

You can read more about personal finance and debt issues at the Debt Consolidation blog.

---

Ebooks, Scripts, Websites, and more...

Adsense websites

Take Careful Consideration Before Filing Bankruptcy

Filing bankruptcy is not fun! It is a last resort... Read More

Deal with All Your Debts with Care!

Lots of people take a large ammount of loans and... Read More

Credit Repair - Understanding The Basics

What is Credit?Credit means that you are using someone else's... Read More

Credit Counseling ? Signs That You May Need Help

Credit counseling is a viable option for those who are... Read More

5 Options Toward Debt Relief

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

Bankruptcy: Which Chapter Do I File?

There is more than one kind of bankruptcy. You should... Read More

Credit Card Debt Elimination

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

How to Get Money When You Are Broke

(Money You Don't Have to Pay Back) 1. One way... Read More

Help for the Single Mother with Managing Credit and Debt

Today's consumers benefit drastically from the usefulness of credit. Credit... Read More

Do It Yourself Debt Relief

With mounting bills and unforeseen hardships, you may be considering... Read More

Individual Voluntary Arrangements- A New Alternative to Bankruptcy

This May, the Department of Trade and Industry in the... Read More

The Bankruptcy Code Acknowledges the Validity of the Homestead Exemption

Many times the subject of bankruptcy seems baffling in its... Read More

Bankruptcy: What the New Law Means to You

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

The First Step To Getting Out Of Debt: Make The Commitment!

These days, getting into debt is easy.Unfortunately, getting out of... Read More

What Are The Benefits and Consequences Of Getting Rid Of Debt The Easy Way

We have all experienced getting so far in debt we... Read More

How to Become Debt Free

In today's consumer society it is all too easy to... Read More

Is There Any Way To Get Out Of Debt?

In this era where we are bombarded daily with commercials... Read More

Debt and Financial Optimism in the UK Continue

With £1.3 trillion pounds worth of debt in the UK,... Read More

Free Quick and Easy Money Saving Tips ? Part 1

With the high cost of gasoline and the amount of... Read More

Bankruptcy: Who is to Blame?

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

Repair Bad Credit Yourself

In March 2005, the U.S. financial services industry succeeded in... Read More

Bankruptcy - Is It The Right Choice For You?

Bankruptcy is one of the tougher choices we as adults... Read More

Creating A Realistic Budget

Budgeting -- ooh, what a scary word! If you want... Read More

The Effects of Consumer Debt

Consumer Borrowing Consumer borrowing in the UK has now crashed... Read More

Debt Settlement : What You Need To Know

Debt Settlement companies work with your creditors to help you... Read More