Bankruptcy law gets tough on debtors: latest legislation seeks big payback for creditors

July 31, 2005 | | Black Enterprise |
"The Congress members of both parties who are embracing these punitive measures for working families are dangerously out of touch with the grim economic realities faced by ordinary families," says Tamara Draut, director of the Economic Opportunity Program of New York-based think tank Demos.
For decades, declaring bankruptcy has been a last-resort measure to re-establish financial standing for economically distressed individuals and families. Now, a new, controversial law--the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005--will make it harder to seek protection under Chapter 7 of the bankruptcy code, which eventually erases most unsecured debt after a surrender of some resources.