New Bankruptcy Law - Where's the consumer Protection?

On April 20, 2005, President Bush signed into law the Bankruptcy Abuse and Consumer safety Act, a piece of sweeping legislation that brought about the most sweeping changes in personal bankruptcy [http://www.end-your-debt.com/bankruptcy.htm] law in the last quarter century. This bill, which takes supervene in October 2005, passed with the breathtaking keep of both parties of congress, claims, through its very name, to offer "consumer protection." Does it? How are consumers "protected" by this bill?

consumer behavior solomon

The purpose of the new legislation, is to eliminate "bankruptcy of convenience". Sponsors of the bill mouth that most consumer bankruptcy cases involve irresponsible spenders who have shopped or gambled their money away and now do not wish to pay their creditors. They rightly point out that bankruptcy costs the credit card clubs billions of dollars each year and that those costs are passed on to consumers in the form of higher interest rates. By production it harder for those with qoute debt to file for bankruptcy, legislators say that more population will pay their bills, the credit card clubs will save billions of dollars, and the resulting savings will be passed on to consumers in the form of lower interest rates.

Consumer

The bill is lengthy, but key points are as follows:

In short, most consumers are no longer protected from job loss or illness by being able to file under lesson 7 and they will have less help from competent attorneys due to the new liability provision of the bill. There is wee to "protect" consumers in the Bankruptcy Abuse and Consumer safety Act. The sole advantage for consumers resulting from this bill will be lower interest rates and fees from the credit card companies, who will save billions of dollars as a supervene of this legislation. Of course, should the credit card clubs select to keep the savings, rather than pass them on to their customers, then consumers will be left with no advantage or "protection" at all.

New Bankruptcy Law - Where's the consumer Protection?

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