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tdhayes
03-10-2005, 01:11 PM
I thought this may be of interest since Bankruptcy is in the air...

Tougher Bankruptcy Rules...all but certain</span> (http://moneycentral.msn.com/content/Banking/bankruptcyguide/P111684.asp)


<span style=\'color:red\'>Bankruptcy bill&#39;s provisions
If enacted, the bill would:

Set up a new test for measuring a debtor&#39;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&#39;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&#39;s claims for child support among creditors&#39; 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.

-- Associated Press</span>

Other useful articles:
<a href=\'http://moneycentral.msn.com/content/Banking/bankruptcyguide/P77617.asp\' target=\'_blank\'>12 Myths About Bankruptcy</a>
<a href=\'http://moneycentral.msn.com/content/Banking/bankruptcyguide/P96525.asp\' target=\'_blank\'>How To Avoid A Bad Bankruptcy Attorney</a>
<a href=\'http://moneycentral.msn.com/content/Banking/bankruptcyguide/P102899.asp\' target=\'_blank\'><span style=\'color:blue\'>Why Going Broke Is A Fact of Life In America</a>

chuchu
03-10-2005, 11:38 PM
TD, you are the bomb. This is good since bankruptcy is such a hot topic.

EarthyDiva
03-11-2005, 02:03 AM
Very good info. thanks tdhayes.

Sidenote: Did you know that 50% of bankruptcy&#39;s today are directly related to health related bills? I will go to my happy place and not think of current prez. :doh. I&#39;ll get the ref tom at work.

ED

tdhayes
03-11-2005, 12:52 PM
Welcome ladies!

I just wanted folks to be aware of what&#39;s happening. They are beginning to crack down and it is NOT going to be pretty.

elleebeme5
03-11-2005, 01:02 PM
I know several people who have filed. Two of them seem to be the kind that the law is after. They filed twice while maintaining their comfortable lifestyle. One woman bragged that if some corporation can, then she can. It&#39;s been awhile since we talked so she might be doing it again before the law takes place for all I know.

But I read about a family in my neighborhood that was on the opposite end of the spectrum. They were a working class family, dad worked and mom stayed at home. She developed an agressive brain tumor while she was pregnant. In an effort to save her life and her child&#39;s life, the family expended all of their savings AND met the lifetime coverage of her health insurance. Neighbors and family tried to help but they got behind on bills (opted - like most of us - to pay medical bills rather than mortgage, car note, and the two credit cards). The father exhausted his sick leave and had to take days unpaid. The family had to file for BK to try to keep their house. Sadly the woman died but there was only enough insurance money for burial and little extra. This case is vastly different from the people who just charge and charge then file.

tdhayes
03-11-2005, 01:32 PM
Originally posted by elleebeme5@Mar 11 2005, 09:02 AM
I know several people who have filed. Two of them seem to be the kind that the law is after. They filed twice while maintaining their comfortable lifestyle. One woman bragged that if some corporation can, then she can. It&#39;s been awhile since we talked so she might be doing it again before the law takes place for all I know.

But I read about a family in my neighborhood that was on the opposite end of the spectrum. They were a working class family, dad worked and mom stayed at home. She developed an agressive brain tumor while she was pregnant. In an effort to save her life and her child&#39;s life, the family expended all of their savings AND met the lifetime coverage of her health insurance. Neighbors and family tried to help but they got behind on bills (opted - like most of us - to pay medical bills rather than mortgage, car note, and the two credit cards). The father exhausted his sick leave and had to take days unpaid. The family had to file for BK to try to keep their house. Sadly the woman died but there was only enough insurance money for burial and little extra. This case is vastly different from the people who just charge and charge then file.

754149


I agree. Unfortunately, the folks like the first person you mentioned are making things difficult for the people who really DO need to file.