On April 20, 2005, President Bush signed into law the Bankruptcy Abuse and Consumer Protection Act, a piece of sweeping legislation that brought about the most sweeping changes in personal bankruptcy law in the last quarter century. This bill, which takes effect in October 2005, passed with the overwhelming support of both parties of congress, claims, through its very name, to offer "consumer protection." Does it? How are consumers "protected" by this bill?
The purpose of the new legislation, is to eliminate "bankruptcy of convenience". Sponsors of the bill allege that most consumer bankruptcy cases involve irresponsible spenders who have shopped or gambled their money away and now do not wish to pay their creditors. They rightly point out that bankruptcy costs the credit card companies billions of dollars each year and that those costs are passed on to consumers in the form of higher interest rates. By making it harder for those with problem debt to file for bankruptcy, legislators say that more people will pay their bills, the credit card companies will save billions of dollars, and the resulting savings will be passed on to consumers in the form of lower interest rates.
The bill is lengthy, but key points are as follows:
In short, most consumers are no longer protected from job loss or illness by being able to file under Chapter 7 and they will have less help from competent attorneys due to the new liability provision of the bill. There is little to "protect" consumers in the Bankruptcy Abuse and Consumer Protection Act. The sole benefit for consumers resulting from this bill will be lower interest rates and fees from the credit card companies, who will save billions of dollars as a result of this legislation. Of course, should the credit card companies choose to keep the savings, rather than pass them on to their customers, then consumers will be left with no benefit or "protection" at all.
©Copyright 2005 by Retro Marketing.
Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a site devoted to debt consolidation and credit counseling, and HomeEquityHelp.com, a site devoted to information regarding home equity loans.
Financing a college education is one of the more expensive... Read More
Personal bankruptcy is a legal way to give people with... Read More
So you've screwed up. You're drowning in debt. Maybe the... Read More
The Bankruptcy Abuse and Consumer Protection Act, signed into law... Read More
Bankruptcy and Credit - What Happens After Your Debts Are... Read More
Negotiations with creditors have failed. Repossession is imminent and foreclosure... Read More
A "bad credit home loan" can help you climb your... Read More
Honorably and ethically rid yourself of burdensome debts using the... Read More
Debt management (specifically unsecured) is the first step to taking... Read More
Do you, like millions of other Americans, feel like you're... Read More
Bankruptcy is little more than a smack on the hand... Read More
Many people have been taught that you cannot get ahead... Read More
A Debt Checklist allows you to look at items and... Read More
Bankruptcy is a legal way to offer folks with high... Read More
Do you have multiple debts? Do you have just one... Read More
Debt consolidation, equity loans, credit counseling, debt management plans, even... Read More
These days, getting into debt is easy.Unfortunately, getting out of... Read More
When you hear the word "debt", whats the first thought... Read More
In March 2005, the U.S. financial services industry succeeded in... Read More
Signing up for a debt management program is easy; it's... Read More
Knowing how to negotiate debt settlements is the key to... Read More
Recently passed by Congress with overwhelming support, the oddly-named Bankruptcy... Read More
There is a law all smart people break.Parkinson's law.Parkinson's law... Read More
Decreasing your debt is paramount to having a good credit... Read More
Do you want to reduce your debt? Having trouble paying... Read More
We've all heard the phrase, "You have to start somewhere."... Read More
Ask a friend what resolutions they made for 2004 and... Read More
There are many debt relief programs out there both off... Read More
Having something tangible to strive towards can work wonders for... Read More
Living with debt is never a good idea if you... Read More
If you are determined to pay credit card debt off... Read More
After October 17, 2005, a lot of people are going... Read More
Budgeting -- ooh, what a scary word! If you want... Read More
Negotiations with creditors have failed. Repossession is imminent and foreclosure... Read More
A "bad credit home loan" can help you climb your... Read More
Do you have multiple debts? Do you have just one... Read More
Do you want to reduce your debt? Having trouble paying... Read More
A headline for a retirement annuities flyer declares "Future Secured!"... Read More
Step 1. The purpose of this first step is to... Read More
For many, the word 'budget' immediately sends shivers down the... Read More
People over extend themselves financially as a result of a... Read More
Good credit is everyone's dream. A wise use of credit... Read More
In April 2005, Congress made sweeping changes in U.S. bankruptcy... Read More
In today's consumer society it is all too easy to... Read More
If you are determined to pay credit card debt off... Read More
Getting Behind Getting behind on your debts owed can be... Read More
Debt negotiation and settlement can give you a drastic reduction... Read More
Still living from pay to pay? Or envying those great... Read More
If you have multiple debts, you may well be wishing... Read More
WILL MY CREDITORS STOP HARASSING ME?Yes, they will! By law,... Read More
1) Use your AssetsIf you have assets with some significant... Read More
It's difficult not to be concerned when facing numbers like... Read More
Personal bankruptcy is a legal way to give people with... Read More
As a single mother, lets admit it, times get tough.... Read More
Can you stop debt collectors ? . . .You better... Read More
Next to winning the lottery, a debt consolidation loan is... Read More
Personal debt reduction practices, the steps people take to relieve... Read More
Knowing how to negotiate debt settlements is the key to... Read More
Bankruptcy laws give debtors a way to resolve debt by... Read More
Debt is not much fun and when faced with it,... Read More
Strictly speaking, his advice was preceded by another Heinlein maxim... Read More
FTC opinion letter on validation Section 809(a) of the FDCPA,... Read More
If you once have been caught in the debt trap,... Read More
An inability to manage credit, growing debt and bankruptcy are... Read More
People often get to a place where they simply can't... Read More
Last April, President Bush enthusiastically signed into law the oddly-named... Read More
Debt Relief |