The New Bankruptcy Laws - Truth about the unconstitutional new BK law changes. On April 20, 2005, George Bush signed the new "Bankruptcy Abuse and Consumer Protection Act" into law.
Bankruptcy Abuse? Do you know anyone personally who has abused the Bankruptcy laws, and are consumers really protected? Or, should this new bankruptcy bill be called the "Abuse the Consumer and Protect the Fraudulent Banks Act"?
We'll soon see...
In order to understand these unfair new bankruptcy laws, and to help you see that you must avoid bankruptcy, lets cover the original purpose of the BK laws.
According to U.S. Bankruptcy Courts, the primary purpose of the old bankruptcy Chapter 7, bankruptcy Chapter 11 and bankruptcy Chapter 13 laws were: 1) to give an honest debtor a "fresh start" in life by relieving the debtor of most debts, and 2) to repay banks and creditors in an orderly manner to the extent that the debtor has property available for payment.
Apparently the primary purpose of the new credit card bank BK laws is: 1) to repay banks and creditors in an orderly manner to the extent that the debtor has property available for payment.
However, with the new BK laws, giving an honest debtor a "fresh start" in life by relieving the debtor of most debts has been done away with.
The finance companies and credit card banks all blame the necessity of the bankruptcy changes on the .003% of abusers of the old bankruptcy laws.
Sponsors of the bill claim that most bankruptcy personal cases involve irresponsible spenders who have shopped or gambled their money away and now do not wish to pay their creditors so the new BK legislation, will eliminate "filing bankruptcy for convenience".
There is NOTHING further from the truth then these claims alleged by the credit card banks and finance companies. And, as you dig deeper into these pages, you'll see who's really abusing who in America's credit, finance and banking game.
They claim that bankruptcy costs the credit card banks billions of dollars each year and that those costs are passed on to customers in the form of higher interest rates.
That of course would be true if the credit card banks were actually lending any of their own money, or their customer's deposited money. For more details, read our page a history of money and banking secrets that banks don't want published.
And, by making bankruptcy filings harder for those with financial trouble, legislators say that more people will pay their bills, the credit card companies will save billions of dollars, and the resulting savings will be passed on to consumers in the form of lower interest rates.
We've never ever heard of a credit card company lowering interest rates voluntarily, and we know they never will.
New Bankruptcy Law Highlights
The key highlights of the credit card banks new bankruptcy laws are:
The new bankruptcy laws apply a means test for people filing bankruptcy. If a debtor has at least $100 per month left over after an IRS determined monthly expense plan, (can you picture that?) the debtor will be forced to file Chapter 13 and pay for five years.
Just imagine life after bankruptcy now.
They will not be able to file Chapter 7 of the Federal bankruptcy code, which would have eliminated all of their unsecured debt.
There are no provisions in the bankruptcy law for debt problems caused by job loss, illness or other traumatic events, despite studies that show that these are the cause of most bankruptcy cases.
Can you say Debt Slave?
With these new, credit card BK laws, attorneys are now responsible for the accuracy of paperwork filed by their clients. So in other words, your attorney must now search your dresser drawers for those hidden family heirlooms.
This will no doubt result in fewer bankruptcy attorneys, with the remaining ones raising their fees in order to cover this additional liability.
With the new bankruptcy laws most consumers are now completely unprotected from losing a job or having medical problems. They can no longer start over by filing for bankruptcy Chapter 7.
They will have less affordable help from capable BK attorneys due to the new bankruptcy law liability stipulation.
Giving an honest debtor a "fresh start" in life by relieving the debtor of most debts has been done away with completely thanks to the new bankruptcy laws.
However an amazing discovery has been made that you cannot miss learning about. Now that you must avoid bk as there is no PROTECTION for consumers provided by the new Bankruptcy Abuse and Consumer Protection Act if filing bankruptcy under the new bankruptcy laws.