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.

---

The Last Debt Solution Should Be Bankruptcy

A debt solution like bankruptcy should really only be used... Read More

Credit Counseling ? Signs That You May Need Help

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

Ten Ways to Get Out of Debt

1) Use your AssetsIf you have assets with some significant... Read More

Debt Elimination Is The Key to Financial Freedom

If you want financial freedom, the first thing that you... Read More

Repair Bad Credit Yourself

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

The Debt Free Lifestyle

Many people have been taught that you cannot get ahead... Read More

Different Ways Of Dealing With Debt

Bills, creditors, debt collectors. Are you yearning for the days... 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

Questions to Ask a Credit Counseling Service about Debt Relief

Debt relief is a topic on a lot of consumers'... Read More

Eliminating Credit Card Debt

The overwhelming task of eliminating your debts can often seem... Read More

Life After Bankruptcy

Bankruptcy and Credit - What Happens After Your Debts Are... Read More

Drowning in Debt? Tips and Tricks for Getting Out of Hot Water with Creditors

Do you, like millions of other Americans, feel like you're... Read More

Out of Credit Card Debt - Without Filing Bankruptcy

To be out of credit card debt is your dream... Read More

Bankruptcy 101

Bankruptcy still remains a mystery in the eyes of many... Read More

A Debt Elimination Process Must Be Initiated From You.

The first and maybe most important step in a debt... Read More

Two Ways To Debt Relief

There are many debt relief programs out there both off... Read More

Utah, the Nation?s Bankruptcy Capital

Congress recently passed the Bankruptcy Abuse Prevention and Consumer Protection... Read More

The Human Side - Debt Stress

In all the technical discussion you hear about credit... Read More

Debt is The Master of Souls

Wholeness requires separation. In order for you to experience yourself... Read More

Debt Getting You Down? - Make a List!

Debt is not much fun and when faced with it,... Read More

Take Careful Consideration Before Filing Bankruptcy

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

Five Hot Tips To Get Out Of Debt Forever

The financial and psychological burden of being in debt causes... Read More

Start Small and Your Wealth Will Get Bigger

We've all heard the phrase, "You have to start somewhere."... Read More

4 Simple Ways to Solve Your Debt Burden

Getting Behind Getting behind on your debts owed can be... Read More

Slowing Spending - The Key To Your Debt Plans Success

Anyone who embarks on a debt reduction program should know... Read More