When Congress agreed this spring to tighten the bankruptcy laws and crack down on consumers who took on debt irresponsibly, no one had the victims of Hurricane Katrina in mind.Come on. That they never imagined such a thing is just bullshit. They didn't care about the possible effects on Americans as they were too busy shooting down any and all amendments to this crap piece of legislation to ensure passage for the credit card companies. They knew of the possibilities. They didn't care.
Go read A copy of the Democratic House Judiciary Staff's dissenting views on the bankruptcy bill that was leaked to RAW STORY prior to the bill's passage. It's right there...
While some people abuse the bankruptcy system, more than 90 percent of debtors file for bankruptcy due to unemployment or underemployment, an illness or accident, or divorce. The bulk of the remainder suffered from other legitimate difficulties, including activation for military service, being a victim of crime or natural disasters, or a death in the family ...
a. Concerns Regarding the Means Test
It is incorrect to assume that the effect of S. 256’s harmful provisions would be limited to individuals seeking bankruptcy relief who earn more than the state median income.
The definition of “current monthly income” used in the means test measures a debtor’s income based upon how much the debtor earned in the six months prior to bankruptcy. If the debtor lost a good job in month three and has been working at a low-wage job ever since, the income from that good job, and help from family members, would be counted as if that is what his future income would be. The debtor would be expected to pay out of income that may no longer exist. Also, the means test will pick up a variety of revenue sources – such as disaster assistance, and Veterans’ benefits – which will result in lower- and middle-income individuals being cast as bankruptcy “abusers” with income above the median.