Bankruptcy Law

bankruptcy law
Do u think it is strange that the Bankruptcy changed, then this great disaster Forclosure?
I wonder if the government knew that this derailment Economic coming in a couple years to change the Bankruptcy Act to protect the interests of Corporate America. What do you think?
Of Back in 2005 when the new bankruptcy laws were passed by Congress many fear the legislation could have consequences that no one imagined. And surprise surprise The new bankruptcy law is contributing to the increase in foreclosures across the country. Everyone thinks of bankruptcy as a tool to get out of debt, but the real reason of bankruptcy is to allow entrepreneurs to take more risk. One of the best things about the U.S. economy is that innovation is very high value. And that failure is not punished as in the rest of the world. This has given the U.S. a competitive advantage is disappearing when we fail to reward the assumption risk. But growing problem in today's housing market is different, foreclosures are rising, while bankruptcies, though clearly on the rise, are running about half the pace of 2001-2003. The reason: the new bankruptcy law, passed by Congress in 2005 after years of debate, makes it much more difficult for families to get out from under consumer debt. The result: more people who are forced to walk away from their homes, leaving lenders in the lurch. Perversely, a law designed to help the financial industry may damage the housing sector, creditors and borrowers alike. "No matter what you think of the effects of the new bankruptcy law. The timing is bad," said Susan M. Wachter, a professor of real estate at the Wharton Business School. via BusinessWeek
STX Crossfire BANKRUPTCY LAW PART 1







