bankruptcy laws

Thursday, December 17, 2009

at 8:24 PM

Entra en vigor la nueva ley de quiebras
Declarar la bancarrota será más difícil

New regulations to declare bankruptcy enter into force on Monday, complicating the process of going bankrupt and forcing Americans to pay part of their debts. The measure passed by Congress and ratified into law by President Bush last April in what was the first reform the bankruptcy law in the past 25 years.

You must pay some of its debt

"Bankruptcy should always be the last resort in our legal system," Bush said. "If someone does not pay its debts for the rest of society ends pagándoselas" he said.

Under the new bankruptcy law, many debtors will propose on installment payment plans instead of bankruptcy court will relieve its obligations.


The new law passed by Congress after being pushed for eight years by banks and credit card companies.

The measure requires people with incomes above a certain level to pay some or all of their credit card debts, medical bills and other obligations under a bankruptcy plan ordered by the courts.

Bush said the new law makes the financial system fairer for debtors and creditors.

"The act of Congress I sign will protect those who legitimately need help, stop those who try to commit fraud and bring greater stability and fairness to our financial system," the president said.

The House favored the measure by 302 votes to 126. The Senate has already approved its version of the bill in March.

In short, the law will make it harder for citizens to declare bankruptcy, which means eliminating debt in exchange for losing some of their properties and have a blemish on your credit history.

The new law will make people with an income above a certain level are required to pay at least part of their debts under a plan established by the bankruptcy courts.

Most Democrats lawmakers felt the law favors large financial firms (banks and credit card companies) and hurts poorest citizens.

The Democrats also had sought, unsuccessfully, that the new law will not affect people whose excessive debts were due to have been victims of identity theft.

However, most of the Republican Party insisted on its arguments that is currently too easy for people to declare bankruptcy and debts.

According to Republicans, the current system allows many people from rich people with properties in states bordering the confiscations to compulsive gamblers do not meet their debts, resulting in higher interest rates for consumers who did pay.

The measure requires people with incomes above a certain level to pay some or all of their credit card debts, medical bills and other obligations under a bankruptcy plan ordered by the courts