“Tougher personal bankruptcy law looms”
By Dana Dratch, Bankrate.com
December 10, 2002

A bill sponsored by Senator Chuck Grassley (R-Iowa), and vigorously supported by the finance industry, would create a host of new requirements for consumers who want to declare bankruptcy.

Proponents of the bill say the requirements are necessary and long overdue to prevent abuse. Opponents say the bill is grossly weighted in favor of creditors and punishes people in debt through no fault of their own.

Under the new proposal, those filers would have to pass a test to qualify. New bankruptcy regulations would measure the debtor’s disposable income to determine the money available to pay creditors with an emphasis on earning potential, rather than actual income. The new system also would limit a filer to housing, transportation and food allowances based on regional norms.

Critics charge that if this bill becomes law, it will slow the bankruptcy process and make it more complicated and more expensive, effectively removing it as an option for many of those who truly need it.

This is only a summarization. You can read the entire article on Bankrate.com’s website at http://www.bankrate.com/brm/news/credit-management/20021210a.asp?print=on

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