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Washington, D.C. - President Bush has signed the biggest rewrite of U.S. bankruptcy law in a quarter century making it harder for debt-ridden Americans to wipe out their obligations. Congresswoman Eddie Bernice Johnson voted against the legislation and continues to voice opposition.
The bill bars individuals with average incomes or higher from having their debts dismissed after liquidating most of their assets, and instead requires them to file under Chapter 13 of the bankruptcy code, which requires debtors to pay off most or all of their debts.
“Throughout our country’s history, our economy and government has always provided for people to get a fresh start under the bankruptcy law, to enable them to go forward and make a contribution to our economy and our society,” said Congresswoman Johnson. “I could not, in good conscience, support a bill that so many hard working Americans look to as a last resort.”
Meanwhile, over the last eight years, credit card profits have increased more than 160 percent, from $11 billion to more than $30 billion. There are now 5 billion credit card solicitations a year, stuffed into mailboxes and targeted at teenagers with no jobs, no income, and no visible means of support to pay credit card bills.
President Bush signed the bankruptcy bill into law yesterday, April 20, 2005.
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