A bill, written by lobbyists of credit card companies like Citibank and which makes it far much more difficult for consumers to declare bankruptcy, has passed into law today. The bill won a dramatic victory in the senate, receiving unanimous Republican support (17 Democrats voted for this as well, so no guff from you leftist whiners). It is a much-needed victory for the oppressed rich white men and multi-national creditors and corporations. How it “benefits” you and I?

If your income allows you to pay 25 percent of your debts, you may not be eligible for Chapter 7 bankruptcy anymore.

*Debtors now will have to provide a certificate of credit counseling and a repayment plan from an approved agency within 180 days of filing. They also will have to complete a financial management course.

*Certain recent purchases, from here on, must be repaid.

*With additional paperwork to complete, lawyer fees will be higher, raising the total cost of a bankruptcy from about $1,000 to an estimated $1,350.

90% of bankruptcies are filed as a result of job loss, medical bills, or divorce/deaths in the family, according to Elizabeth Warren, Harvard Law professor interviewed this morning by Al Franken.

Link: Chicago Sun Times


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