Expert: Still time to beat bankruptcy law

Q. I am struggling with a heavy debt load that consists mainly of medical expenses incurred when my family had no insurance. I truly wish I could pay all of my bills, but I seem to fall further behind each month. I am now considering filing bankruptcy. I hear that there is a new bankruptcy law. Has it gone into effect yet, and if not, should I wait for it?

A. You’re right that there is a new law in the works. President Bush signed the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 into law on April 20, 2005. This sweeping legislation makes it much more difficult for consumers to get a fresh start, and it imposes onerous burdens on lawyers who represent people in bankruptcy court. The new law goes into effect in October and will apply to all filings after its effective date. It is likely that the new law will work to your disadvantage, so you should do your planning now.

From Expert: Still time to beat bankruptcy law

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