http://www.foxnews.com/story/0,2933,150017,00.html
Quote:
Each year, somewhere between 30,000 and 210,000 people — from 3.5 percent to 20 percent of those who currently dissolve their debts in bankruptcy — would be disqualified from doing so under the legislation, according to American Bankruptcy Institute estimates. The institute is a group of bankruptcy judges, lawyers and other experts.
The legislation would set up an income-based test for measuring a debtor's ability to repay debts. It would require people in bankruptcy to pay for credit counseling and stiffen some legal requirements for debtors in the bankruptcy process.
Under the new income test, those with insufficient assets or income could still file a Chapter 7 bankruptcy, which if approved by a judge, erases debts entirely after certain assets are forfeited. But those with income above the state's median income who can pay at least $6,000 over five years — $100 a month — would be forced into Chapter 13, where a judge would then order a repayment plan.
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I'm all for bankruptcy reform because let's face it we all know someone that maxed out their cards before filing or filed needlessly. However, this is not the reform needed. If this law passes the House every American in the lower 90% will feel the crunch. Shoot the courts could effectively decide that even people on welfare can make a $100 month payment. I also agree whole heartedly with flstf, it's certainly ironic that the very politicians that can't seem to balance their own budget are forcing every poor and middle class American to balance theirs while the rich get yet another loophole. I would venture to say the people this screws the most didn't have any idea this was coming when they cast their ballot last November. Sadly, a large percentage of them still haven't a clue how badly they are getting screwed. This should give the Democratic Party a little shot in the arm next election. It's pathetic the Republicans are expending so much political capital on measures to make the rich richer and the poor poorer when so many other worth while things could and should be done for all Americans.
*edit* And to add insult to injury, people that can't afford to pay their bills now are forced into yet another monthly bill to pay for credit counseling.