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.