Lawyer Group Criticizes New Bankruptcy Law

[elehhhhna]

Feb. 22, 2006, 4:37PM
Lawyer Group Criticizes New Bankruptcy Law


By MARCY GORDON AP Business Writer
© 2006 The Associated Press

WASHINGTON — A new law making it harder to erase debts in bankruptcy has failed to stop abuses and has stymied people who have legitimate reasons to file, a group representing bankruptcy attorneys contended Wednesday.

A report released by the National Association of Consumer Bankruptcy Attorneys was based on an analysis of 61,335 people who have gone to credit counseling agencies, the required first step before filing bankruptcy under the law that took effect on Oct. 17.

Of the 61,335, 97 percent were unable to repay any debts and 79 percent had gotten into financial trouble because of job loss, huge medical expenses or the death of a spouse, the report said.
http://www.chron.com/disp/story.mpl/ap/nation/3678294.html

"Contrary to the claims of proponents of bankruptcy-law changes that they would zero in on the alleged legions of 'deadbeats,'" the new law is doing no measurable good, said Brad Botes, executive director of the bankruptcy lawyers' group. "Instead, (it has) put new hurdles in the path of people who are already flat on their back due to financial crises over which they have no control."

[babylonsister]

1. I wonder where this group was last year when their opinions were

needed. I wonder if there's any possibility of reversing the law?

[Jacobin]

3. they fought this bill tooth and nail for years

They paid lobbyists to try to fight it.

The National Association of Consumer Bankruptcy Attorneys are good guys.

[babylonsister]

6. Thanks for that info; nice to know, and I realize what an uphill

battle this was.

[sallyseven]

4. You can always reverse a law or amend it.

but will the credit card people let the legislators off after they paid them all that money.

[babylonsister]

5. I've read on DU that the credit card co's haven't been reaping

the rewards they were expecting. Ah, woe is them.

Edit for spelling boo boo

[Jacobin]

2. I can vouch for that

I practice bankruptcy law and it has only made the process complicated, expensive and difficult to understand for the judges and lawyers trying to figure out what the heck the new code means.