President signs bankruptcy bill

CNN/Money ^ | April 20, 2005: 3:24 PM EDT | Jeanne Sahadi

[atrocitor]

NEW YORK (CNN/Money) – President Bush on Wednesday signed into law a bankruptcy reform bill that will make it harder for individuals to clear their debts through bankruptcy.

So, experts say, if you were thinking about filing for bankruptcy, you might think twice -- or act twice as quickly, since major provisions of the law will go into effect six months from the day the law is signed.

[KurtAZ]

Matbe we should adopt the Biblical stance and force creditors to discharge everyone's debt every 7 years. I like that idea. :)

Deu 15:1
At the end of [every] seven years thou shalt make a release.
Deu 15:2
And this [is] the manner of the release: Every creditor that lendeth [ought] unto his neighbour shall release [it]; he shall not exact [it] of his neighbour, or of his brother; because it is called the LORD'S release.

[GrandEagle]

I have no problem with CC companies making money. Just don't use the government to reduce risk on billions of loans you already made.

Well Put!

[atrocitor]

I never thought of it before some of the posters pointed out this biblical passage regarding the 7 years, but under the Bankruptcy Code prior to this reform, you could not file a Chapter 7 within 7 years of a prior filing. I wonder if this past law was based on the biblical passage.

[atrocitor]

See my post 36. Just because bad things are happending to individual debtors, its no reason screw up corporate reorganizations.

[GrandEagle]

My Post
I know, but you are mistaken if you think ...

Sorry, sounded a bit snotty - It was said cordially.

GE

[Conspiracy Guy]

@ 20% ?

[GingisK]

Forgiveness is for wealthy Enron executives, and "friends of the government". The common man, who picks up the tab for these guys, gets screwed once more.

Hope you folks enjoy living in the NWO.

[agarrett]

With this clause, you agree that no matter what happens, you have relinquished your legal rights with regard to the creditor - even if it is intentional, willful, and deliberate.

  As I understand it, courts have overturned those clauses regularly. You may not relinquish your rights to sue in court.

  Of course, those precedents may be too recent to have helped your friend - and you probably still have to try that first, which just adds to the expense. Still, those clauses are regularly overturned. You have a few more rights there...

Drew Garrett

[GrandEagle]

As I understand it, courts have overturned those clauses regularly.
I'll have to hunt it up tomorrow, but the SCOTUS upheld these things. You can give up you rights.

GE

[Conspiracy Guy]

Sounds like he didn't pay attention to his credit and retirement accounts. Identity theft and over extending yourself are two different scenarios. I check my credit report twice a month, looking for new accounts etc. My real credit cards are protected. I'd like to see someone slick enough to crack my 401K and other accounts. Which are protected too. New accounts are not a real issue, but I check for them anyway, since I can prove I didn't open them.

[agarrett]

  Sounds like you know the subject better than I do, certainly. I was reading recently about a case where a law firm was arguing that an adjutication clause they had committed their client to adjutication in a malpractice case. But that same law firm had argued against, and successfully overturned an adjutication clause in a labor contract.

  Ah well, splitting hairs is what lawyers do, and I'm sure they found some difference in the two cases. And the credit card cases probably have some differences too.

Drew Garrett

[Conspiracy Guy]

If you count yourself there, great, your position is harmful to economy of the US.

Say what?

[Conspiracy Guy]

I have a lot of spares.

[GrandEagle]

I'd like to see someone slick enough to crack my 401K
True, he couldn't have been paying too close attention. But, the 401(k) wasn't "cracked". The investment firm (as far as they knew) gave it to the depositor.
Remember, the bad guy didn't pose as himself trying to get into someone else's account.
Just as a curiosity, how could you prove you didn't open a new account?

Regards,
GE

[atrocitor]

?

[KurtAZ]

Naw, forget having to file, we should just make it compulsory for the creditor to clear their books every 7 years. :)

I am kidding of course...I understand the repercussions of wiping out the banking industry...but there are some times that good people have to declare BK. Loss of job comes to mind. Insane Medical bills, some other ones I guess. But from what I understand this legislation takes those into account and actually makes people (collective gasp here) RESPONSIBLE for their own spending habits.

[Conspiracy Guy]

Did the applications not require a signature?

[Conspiracy Guy]

Address and signature. The perp will have a different address and his signature won't match mine. I know because It happened to me and I beat it to the tune of $50k. My retirement acounts are handled by people who know ME!

[Conspiracy Guy]

See your comments in #28.

[Conspiracy Guy]

Identity theft is probably less than 5% of bankruptcy cases.