Tuesday, February 26, 2008
New Bankruptcy Law Restrictions Lifted for Scores of Hurricane Victims
In late 2005, victims of both Hurricane Katrina and Hurricane Rita were allowed to register for bankruptcy without facing many of the filing demands most debtors are forced to deal with. After losing everything, many hurricane subsisters wouldn't measure up for bankruptcy under the restrictive new law.
The United States Department of Justice waived the new demands for all occupants of communities devastated by these hurricanes. The Bankruptcy Maltreatment Prevention & Consumer Protection Act of 2005 would have got prevented untold numbers of people displaced by the hurricanes from filing for the bankruptcy protection they desperately needed.
Requirements that were lifted for Katrina and Rita subsisters included:
The intends test
Mandatory credit counseling
Documentation to avoid aggregation actions
Additionally, any subsisters that needed to travel to a creditors meeting were allowed to ran into with their creditors at a meeting topographic point stopping point to where they dwell currently, even if in another state. Representatives of the United State Trustee Program, a division of the Department of Justice, were given the duty of setting up any required creditors meetings.
The lifting of the restrictive new bankruptcy demands hopefully helped many subsisters who lost everything, to pick up the pieces and get on with their lives without crushing debts weighing down on them.