Bankruptcy Bill details - Mods, please excuse the length, VIP info

[steve2470]

http://www.washingtonpost.com/wp-dyn/articles/A24940-2005Mar10.html


Senate Passes Bill To Restrict Bankruptcy
Credit Card Business Backed Measure to Collect More Debt

By Kathleen Day
Washington Post Staff Writer
Friday, March 11, 2005; Page E01

The Senate approved a measure yesterday backed by the credit card industry that would make it harder for people to wipe out debt through bankruptcy, setting a path for quick passage of the bill by the House within weeks.

The 74 to 25 vote in favor of the bill, which would make the most significant changes in bankruptcy law in more than 25 years, was propelled by a 55-member Republican majority that voted in unison, joined by 18 Democrats and one independent.

_____ Senate Legislation _____

If enacted, the bill would:

• Set up a new test for measuring a debtor's ability to repay. People 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 order a repayment plan.

Under current law, a bankruptcy judge determines under which chapter of the bankruptcy code a person falls -- whether they have to repay some or all of their debt.

• Require people filing for bankruptcy to pay for credit counseling.

• Give top priority to a spouse's claims for child support among creditors' claims on a debtor in bankruptcy.

• Allow for special accommodations for active-duty service members, low-income veterans and those with serious medical conditions in the new income test for bankruptcy applicants.

• Restrict the homestead exemption in states to $125,000 if the person in bankruptcy bought his or her residence at least three years and four months before filing. Florida, Iowa, Kansas, South Dakota and Texas have unlimited homestead exemptions that allow wealthy people to file for bankruptcy and keep their mansions in those states sheltered from creditors.
Source: The Associated Press


<snip>

[papau]

1. The Dems got some major fixes put in - congrats! But the

special accommodations those with serious medical conditions in the new income test for bankruptcy applicants does not carve out medical bills per see -

and why do you still need to be sick to get the special accommodations ?

[MrScorpio]

2. Stop it, Steve, you're making my head hurt

This is the fucking Lounge for goddess sake