Bankruptcy

Obama Proposes Bankruptcy Changes

By J. Michael McBride

Barack Obama proposes changing bankruptcy laws to help military families, seniors, and people recovering from natural disasters.
According to the Associated Press, “Obama said he also would help service members and military families struggling financially after multiple moves, lengthy deployments and, in some cases, predatory lenders.”

Also, Obama wants to allow a faster bankruptcy process for all service members regardless of what state they live in. This is a departure from current law that says people can use federal bankruptcy exemption laws if their state of residence allows. According to a campaign-issued fact sheet, almost 35 states bar families from federal exemptions.

As for seniors, Obama said “people in that age bracket would get a minimum federal homestead exemption equal to the median cost of a home in their state, giving them a better chance to keep their homes and helping them maintain both their independence and their financial security."

Obama said he would help families recovering from a natural disaster by “streamlining the bankruptcy process for those in certified natural disaster areas by eliminating unnecessary paperwork and waiving unneeded credit counseling requirements.”

Here is a link to the article:
http://ap.google.com/article/ALeqM5hiBZp5QJXYZRlj_zYa0ebd-0RsfwD91POFAG0

Here is an additional link to an article on the same subject:
http://www.washingtonpost.com/wp-dyn/content/article/2008/07/08/AR2008070800861.html

Yameena

Full post as published by Texas Lawyer Blog on July 09, 2008 (boomark / email).