A personal finance blog dedicated discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance.


Wednesday, March 02, 2005

New Bankruptcy Bill Being Pushed

I saw this in the Wall Street Journal. Apparently, there is a new bill being pushed in the Senate to make it harder for people to walk away from their debts. The new bill would limit the use of Chapter 7 bankruptcy, which basically wipes out credit card bills or unsecured loans. The article states that currently, 70% of all individual bankruptcies are of the Chapter 7 variety.

Under the new bill, people with the means to pay off their debts would be required to file Chapter 13 bankruptcy, which allows the court to set up a partial repayment program. The new bill would not affect those who have incomes below their state's median income.

Overall, I think this is a good thing.