Bankruptcy Reform Passes Seven Year Milestone

We just passed the seven year anniversary for bankruptcy reform.  It is hard to believe that October 17 made for the seventh year since reform.  Most bankruptcy professionals would agree that reform has been a disaster.  There is such a greater cost and burden to a debtor who is simply trying to avail himself of a fresh start.  Adding insult to injury is the consumer protection element that has caused for strict scrutiny of reaffirmation agreement; unless your lender is a credit union, of course.  In that case, there is zero consumer protection.  That is unfortunately how the law is laid out.

What remains in the insurmountable debt in this country.  People are overwhelmed with credit card debt, medical debt and debts from foreclosures.  Thank heaven that the law still provides for relief.  There may come a day when people will be forced to repay under Chapter 13 despite needing a Chapter 7.  Time will tell on that one.  For now, we still have a semblance of the bankruptcy law that existed prior to October 17, 2005.