Count down to bankruptcy reform
The new bankruptcy "reform" legislation goes into effect October 17. The WSJ reports today that bankruptcies are up 14% for the year. More than 68,000 filed bankruptcy from September 26 to October 1.
According to the article, bankruptcy experts say that the new means test--which requires people to file under Chapter 13 with a plan to pay all or part of their debts if their income exceeds the state median and to pass other income and expense tests--will actually effect less than 15% of filers.
We shall see. Even if you don't have to file Chapter 13 because your income is low, there are lots of hurdles put in place to make it more difficult and expensive to file bankruptcy, such as the need to get credit counseling and to provide tax returns and other paper work to support your filing. The lawyers and judges are not looking forward to this. I, for one, have opted out and won't be filing bankruptcy for anyone any more.
No more lawyer stuff, no more political stuff, so no more CYA