UTAH BANKRUPTCY LAW HANDBOOK

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BANKRUPTCY REFORM

On April 20, 2005, President Bush signed The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.  The bill represents the most sweeping re-write of U.S. bankruptcy laws in a quarter-century.  Credit card companies and banks have been pushing for the new laws for the past eight years and have spent over $250 million in lobbying efforts.  The new bill will make it much more difficult and expensive to erase obligations in bankruptcy. 

IMPORTANT:  The new laws will not take effect for 180 days following President Bush's signing of the bill.  If you file within this 180-day period, the present, debtor-favorable bankruptcy laws will still be applicable.  File before October 17, 2005 to ensure you will qualify for bankruptcy relief.

The new laws were literally written by the credit-card industry and fail to restrain aggressive marketing and high rates charged by credit card issuers.  Credit card companies will be permitted to continue business as usual; i.e., entice vulnerable customers to extend their balances, then nail them in the fine print.  The new bankruptcy laws are expected to be especially hard on low-income working people, single mothers, minorities and the elderly, and will remove a safety net for those who have lost their jobs or face mounting medical bills. 

Detailed information regarding the bill can be found on the following links:

http://doney.net/bra/index.htm