New bankruptcy law will cost consumers

Bankruptcy petitions surged recently as Americans sought to beat the deadline before a more restrictive law took effect on October 17.

Bankruptcy petitions surged recently as Americans sought to beat the deadline before a more restrictive law took effect on October 17.

Experts predict that filings during the final week could be as much as six times the weekly average of 30,000. Finance and business writers at major dailies opined that the sweeping changes are intended to make it harder for consumers to erase debt while increasing the complexity and cost of the filing process via requirements for credit counseling and more paperwork.

Most frequent messages

Record number of filers rushed to beat the deadline

The new law will make it harder for consumers to erase their debt

Credit counseling and added education are now required before a case is discharged

Consumers must be wary of businesses that may take advantage of the new law

Some of the new requirements have been waived for victims of recent hurricanes

Based on analysis of major market news coverage that appeared between October 14-18, 2005

Evaluation and analysis by Delahaye - a division of Bacon's Information

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