Crowds Try to Beat Bankruptcy Deadline
By Associated Press
October 14, 2005, 1:00 PM EDT
DENVER -- More than 200 people lined up at the U.S. Bankruptcy Court in Denver on Friday, the last day to file for bankruptcy before a new law makes it harder for consumers to seek protection from debtors. The crowds filing bankruptcy claims broke records in Denver this week, and bankruptcy courts across the nation reported heavy traffic.
Nationwide, the number of filings has climbed 19.4 percent year-to-date to 1.47 million, compared with 1.23 million during the same period in 2004.
In Baton Rouge, La., hundreds of residents hit by hurricanes Katrina and Rita have flocked bankruptcy court. Claims have increased tenfold from last year at the New Orleans-based federal bankruptcy court of the Eastern District of Louisiana. Louisiana's three district bankruptcy offices have processed 28,604 bankruptcy filings since Jan. 1, which is more than all of 2004.
"The debtor lawyers that I know, and I know most in the state, are very, very busy," said David Rubin, who chairs the Baton Rouge Bar Association's bankruptcy law section.
Rubin said the situation is complicated by the fact that many people and businesses still do not know what they will get from insurance following the hurricanes.
Last week, the U.S. House killed a bill by U.S. Sen. Mary Landrieu, D-La., to postpone the new portions of the bankruptcy law for areas hit by Katrina and Rita. The U.S. Office of Trustees, which oversees bankruptcy cases for 48 states, said it would allow for special circumstances on a case-by-case basis for people affected by natural disasters.
In Minnesota, bankruptcy attorneys say there is so much demand they've been turning away potential bankruptcy cases.
"We have paperwork stacked like cordwood in the back room," said Dick Pearson of the bankruptcy firm Prescott and Pearson. "We physically can't take any more cases."
After Monday, the requirements for bankruptcy protection become much more stringent. People with above-average income, as determined by a standard "means test," will be barred from filing for Chapter 7 protection, where debts may be wiped out entirely. Instead, they will have to file more restrictive Chapter 13 bankruptcies, which require a five-year repayment plan.
Filers also will be required to get professional credit counseling with 180 days of filing.
Link Here
October 14, 2005, 1:00 PM EDT
DENVER -- More than 200 people lined up at the U.S. Bankruptcy Court in Denver on Friday, the last day to file for bankruptcy before a new law makes it harder for consumers to seek protection from debtors. The crowds filing bankruptcy claims broke records in Denver this week, and bankruptcy courts across the nation reported heavy traffic.
Nationwide, the number of filings has climbed 19.4 percent year-to-date to 1.47 million, compared with 1.23 million during the same period in 2004.
In Baton Rouge, La., hundreds of residents hit by hurricanes Katrina and Rita have flocked bankruptcy court. Claims have increased tenfold from last year at the New Orleans-based federal bankruptcy court of the Eastern District of Louisiana. Louisiana's three district bankruptcy offices have processed 28,604 bankruptcy filings since Jan. 1, which is more than all of 2004.
"The debtor lawyers that I know, and I know most in the state, are very, very busy," said David Rubin, who chairs the Baton Rouge Bar Association's bankruptcy law section.
Rubin said the situation is complicated by the fact that many people and businesses still do not know what they will get from insurance following the hurricanes.
Last week, the U.S. House killed a bill by U.S. Sen. Mary Landrieu, D-La., to postpone the new portions of the bankruptcy law for areas hit by Katrina and Rita. The U.S. Office of Trustees, which oversees bankruptcy cases for 48 states, said it would allow for special circumstances on a case-by-case basis for people affected by natural disasters.
In Minnesota, bankruptcy attorneys say there is so much demand they've been turning away potential bankruptcy cases.
"We have paperwork stacked like cordwood in the back room," said Dick Pearson of the bankruptcy firm Prescott and Pearson. "We physically can't take any more cases."
After Monday, the requirements for bankruptcy protection become much more stringent. People with above-average income, as determined by a standard "means test," will be barred from filing for Chapter 7 protection, where debts may be wiped out entirely. Instead, they will have to file more restrictive Chapter 13 bankruptcies, which require a five-year repayment plan.
Filers also will be required to get professional credit counseling with 180 days of filing.
Link Here
posted by Kangaroo Brisbane Australia at 4:34 PM
1 Comments:
Baton rouge means "RED STICK". All they need is a STICK! :D
Screw Bush!
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