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New Bankruptcy Law A Reality!

Bankruptcy is too good a deal....they said.
People aren't paying what they can afford....they said.
People are abusing the bankruptcy system....they said.

These are things the credit card companies were telling your United States Congress.  And the worse thing is...your Congress was listening.

Nothing could be further from the truth...according to responsible surveys and my experience....but these are the things the credit card companies had Congress believing....and for good reason.

There is a lot of money at stake. Credit cards have been an absolute "cash cow" for the lending industry. In just 2003, according to an article published in USA Today on 7/14/04, quoting R.K. Hammer Investment Bankruptcy, an organization that tracks the credit card industry, the credit card companies racked in 120 billion dollars.

And you know who's footing the bill....you are.

Over the course of the past 7 years, powerful credit card companies and financial institutions successfully lobbied Congress to make changes to current bankruptcy laws. When they are making billions of dollars a year, is it any wonder that the credit card companies were more than willing to spend a few million dollars paying for lobbyists....on the one hand....and making campaign contributions....on the other...if it meant they had a chance to keep you and other good, hard working people from filing bankruptcy....the one thing that gets you out from under their control.

The bankruptcy bill before Congress was "spun" as reform....but to all those in the know...it was nothing more than "deform"....a bill clearly intended to shut down bankruptcy as the escape hatch for good, honest hard-working people crushed with debt.

Why, you ask?   Easy.  If you can't file bankruptcy, the credit card companies thought, they could go right on squeezing you for more money.  If you couldn't file bankruptcy, they wouldn't have to worry that abusing you by increasing your interest rates or increasing the amount charged for late payments, will drive you into the hands of a bankruptcy attorney.

As expected...there was so much money at stake that the credit card industry  continued to push and push and push its passage. 

As it turns out, the big credit card companies made a horrible mistake.

They didn't get what they paid for.

You know that new, big, bad bankruptcy law.

Turns out that it "ain't that bad"!

Want to know why?   (Just click here)