Monday, August 13, 2001
Some of the changes that would take effect under the bankruptcy reform law as proposed:
Higher priority would be given to child support payments due to custodial parents, making it more difficult for people to avoid paying support.
Debtors would be required to pay the full amount of an outstanding vehicle loan, even if the amount is greater than the value of the vehicle.
Fewer consumers would be eligible to file Chapter 7 bankruptcies, which allow them to wipe away debt and start anew.
The amount of home equity debtors can protect from creditors would be capped at $125,000.
Debtors will be required to seek consumer credit counseling before being able to file bankruptcy.
Small businesses will have a more difficult time reorganizing under Chapter 11.