Bankruptcy Law Nears Passage

The House will take a vote this week on the Bankruptcy Abuse Prevention and Consumer Protection Act. This act will make it harder for people to get rid of their debts by declaring bankruptcy. The bill has already passed in the Senate. This could be huge if it is passed. I wonder what will happen though; what will happen to people that die and have major debt? Will it pass on to the family? What should happen?


Jim said...

This reminds me of our book that Dr. Tufte talks about in class. The other day he asked the class about what should happen to the workers who's jobs are exported. Further, he wanted to know if the government were to help them, would the government help each and everyone, or would it be on a case-by-case method; if so who gets to decide who gets help and who does not. I feel bad for those who really do need help, but what about those that do not need it as much as others. Good blog.

C-Dizzle said...

I think the idea of holding people accountable for their own debt is a great idea! Perhaps this idea should have been implemented years ago! I’ve known too many people that use and abuse the bankruptcy laws. I’m personally familiar with the effects of such abuse in the construction business. My dad owned a construction company in Las Vegas a few years back. He said it was not uncommon for a contractor to stiff him out of thousands of dollars, claim bankruptcy, and then opens doors under a new company name months later. One particular person did this in Vegas for years before something was finally done about it.

Dr. Tufte said...

This has now (on April 26) been passed and signed into law.

I think this is a good thing. What they are really trying to prevent is people from claiming bankruptcy because they've moved from a liquid to a non-liquid position, usually through excessive shopping and buying.

Any thoughts on how this will effect Utah - the state with the highest bankruptcy rate in the nation?