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New Bankruptcy Rules Add to Consumer Woes, But Work Better for Corporations

Posted May 12, 2008, 05:45 pm CDT
By Martha Neil

No one foresaw the subprime mortgage meltdown when new consumer bankruptcy provisions were enacted that went into effect in the fall of 2005. And now the new rules are making the real estate situation worse than it otherwise would be, a federal judge said today at a conference in New York.

Under the Bankruptcy Abuse Prevention and Consumer Protection Act, consumers generally have to pay more of their credit card debt than they did under previous law. Debtors do so in order to stay afloat financially, U.S. Bankruptcy Judge Cecelia Morris told the audience at an American Bankruptcy Institute Conference today in New York. But as a result, the judge says, more debtors are losing their homes, reports Continue reading...

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Title: New Bankruptcy Rules Add to Consumer Woes, But Work Better for Corporations



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