BANKRUPTCY LAWS: PAST, PRESENT AND FUTURE
In basic terms it’s meant to satisfy the creditors. The assets of the person in debt get allocated to the creditors to cover the debt that was accrued.
Why is this done?
It’s done to severe a person’s ties to his or past. This gives the person a chance to start over in life, without worrying about some financial looming over his or head. In the 1970’s the primary use for this law was due to medical bills and such. Now credit cards have changed this rule. Now people use it to get out of credit card issues.
THE BIGGEST CHANGES TO THE LAW
There have been lots of things added and subtracted since the onset of this law in the 1800’s. Yes, this law actually originated back then. It didn’t have much attention because not too many people were abusing the system.
Based on some of the more recent changes, four big things have become the staple.
1)The Private Trustee Reform Act
2) The Investment in Education Act
3) The Working Family Farmer Protection Act
4) the Bankruptcy Judgeship Act of 1997
The main issue with this law is to bring consumers back to the idea of personal responsibility, the idea of being held accountable for their own actions. It is also there to help weed out those who are just using the law for their own gain.
As with any change, it becomes a wait and see game. With the new reforms being put into law by congress people are hoping for a big turnaround when it comes to those who file and why.
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