bankruptcy bill

Bill in Brief

A bankruptcy bill signed into law April, 2005 makes it more difficult for a debtor to file for bankruptcy under Chapter 7 - which lets you erase your debts - and is intended instead to funnel more debtors down the Chapter 13 route, requiring them to stick to partial repayment plans.

As the Senate bill, S 256, was debated on the floor in March 2005, many congress folk tried to tack on additions to protect certain debtors - but only a provision that would shield disabled veterans ended up being added on.

some more reading:

  • For a description of the new bankruptcy formulas see the Washington Post.

  • As usual, the CBO pulls through with a long winded - but very readable - overview of personal bankruptcy. If only it were up-to-date (it's from 2000).

  • You can get 2005 numbers on how many Americans are filing for bankruptcy, along with mind-numbing charts on stats from 1983 - from U.S. Courts.

  • More stats from a pro-bankruptcy site.

  • The New York Times did not like the bill.

  • Cato did.

  • Department of Justice's overview of how the new law works.

Updated April 24, 2005

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