June 19, 2006
Tough bankruptcy law throws up new questions
The new bankruptcy law, which took effect in October last, was designed to make it more difficult for people to write off their debts under Chapter 7 bankruptcy. And for the first time, the new law mandated that anyone filing for bankruptcy would have to compulsorily go through credit counseling to consider alternatives before filing -- but the moot question is; does this solution work? Orlandosentinel.com reports:
Steve Bartlett, president of an industry association called the Financial Services Roundtable, supports the law but says it's flawed. "Early on, most of the pre-bankruptcy counseling is not especially useful because it's only occurring for people right before they go into bankruptcy," Bartlett said. "The flaw is that the bankruptcy counseling is only occurring at the end of the process when you have little option."
Read more: Bankruptcy law put to the test
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