Tuesday, October 04, 2005


Some slight relief for those who may have to file for bankruptcy due to the storm

This doesn't go far enough, but it's a start.

WASHINGTON (AP) — The Justice Department has temporarily waived a provision of a tough new bankruptcy law to aid people filing for bankruptcy in Louisiana and southern Mississippi because of Hurricane Katrina. The department's United States Trustee Program said today that for the time being applicants in those areas would not have to undergo credit counseling before they file.

Some observers had said the new law, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, would produce hardships for hurricane victims. The law requires that any debtor who files for bankruptcy after Oct. 17, 2005 must undergo credit counseling within six months before they file for bankruptcy. The law also authorizes U.S. Trustees to approve credit counseling agencies that meet the law's criteria.

full story here

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