Thursday, August 28, 2008

WHAT PRESIDENT WILL HELP YOU FILE BANKRUPTCY?

Been watching the democratic convention? Whatever your opinion is of the candidates, it is quite a spectacle. I at least never know if I am watching a unique function of our great countries' constitutional system or some bizarre marketing blitz for the sole function to control us and the world. Who knows. Really, who knows if these people are even real.

Anyways, away from my Paul Harveyesque discussion, the topic here is bankruptcy. In 2005, our great congress and senate, with the blessing of our President, signed the new bankruptcy law that is currently in effect. Let me tell you, the law for those of you needing to file, made things a heck of a lot more difficult. You used to be able to pretty much file a Chapter 7 (liquidation) if you couldn't pay your debts. Now, you have to go through what is called a "means test" to see if you meet standards based on local and national standards. Many can still file, but it certainly has loomed to be a deterrent and has caused many more to seek credit counseling (more on this later) than go through bankruptcy.

The problem with the means test and the hoops is that looking at numbers and looking at real life many times are completely different things. For instance, you look like you make good money (lets say 105,000) but have 4 kids and huge expenses. One kid is sick, you don't have insurance, etc. These may not meet the "means test", but you certainly need bankruptcy, as intended. That is what I am saying.

So, in terms of the candidates, which one is best? Well, Mc Cain was a big supporter of changing the bankruptcy laws, and I believe if you checked out his contributions from the banking industry, it would be consistent with the law helping them out. Obama did not support the change in the law, and has stated that he wants the law to change to help people who have lost jobs, in the military, that are having a particularly tough time. Assuming Obama has congressional backing, he will seek to change the law to make it easier for people to discharge their debts to be able to live.

Mind you, if someone defrauds a bank or anyone, bankruptcy doesn't help. This is for legitimate debts of people who need help. It is a fundamental right of our country (actually in the constitution in Article I-To establish a uniform rule of naturalization, and uniform laws on the subject of bankruptcies throughout the United States).

Keep this in mind for you and your fellow Americans when you vote in November.