The President may soon sign a new bankruptcy law that would severely limit your ability to eliminate debt. The banking industry, the wealthiest industry in the country, spent millions lobbying Congress and contributing to political campaigns to pressure our legislators to pass unfavorable law for consumers. For example, MBNA America was the largest contributor to President Bush's campaign, contributing over $234,000. Executives from MBNA and other major credit card companies also made significant personal contributions.
As a result, Congress has passed a bill that would use unrealistic IRS standards for household expenses. Using these conservative standards for expenses, if someone can afford to pay as little as $50 per month to their creditors, they could be disqualified from filing Chapter 7.
Congress has convened a committee to iron out the final details, and the law could be presented to the President shortly. Consumer bankruptcy attorneys are recommending that debtors consult with their attorneys immediately to discuss how the law could impact them.