A report on USA Today’s Web site written by Christine Dugas shows that the U.S. Senate’s delay in changing bankruptcy law to allow judges to change the terms and interest rates on mortgages may bring even more changes to the law regarding credit cards.
Dugas writes…“Congress wrangled for eight years before passing a reform act aimed at curbing abuse and ending an alarming rise in bankruptcy filings. With the economy in tatters and personal fortunes often in even worse shape these days, the bankruptcy law is beginning to undergo scrutiny again.”
Dugas contends that once the mortgage issue is settled, “attention will turn to the 2005 bankruptcy reform.”
“There is continuing concern about the bankruptcy-reform bill and what its effects have been,” says Sen. Sheldon Whitehouse, D-R.I., who leads the Senate Judiciary subcommittee that oversees bankruptcy law. “We are looking at a number of things that we can do to address the problems.”
The reform passed in 2005 made bankruptcy filing more costly and more difficult, according to consumer advocates. It created more hurdles, such as the “means test” and mandatory credit counseling, for those who are experiencing financial difficulty to clear before they can get help from bankruptcy.
Dugas reported that Whitehouse was scheduled to “hold a hearing that will discuss legislation he has introduced that would allow families burdened by exorbitant credit card rates and fees to more simply discharge their debt under bankruptcy. He is considering several other proposals.”
Sounds like someone in Congress is working for the people, and not the banks.
