accessAtlanta

Clark Howard's Tips

New bankruptcy law approaching

August 22, 2005

You've probably heard about the new bankruptcy law that goes into effect in October.

Many people are in favor of the new law because so many previous filers have abused the law and this one is much stricter.

CLARK'S TIP TOPICS Consumer Tips Managing Money Banks & Credit Cards Technology Health & Healthcare Car Costs Homes Phones & Utilities Small Business Travel & Leisure Find more consumer advice in Clark Howard's book, "Get Clark Smart"

Under the new law, you'll have to go to credit counseling before you ever start the program.

And you'll have to repay your debt.

If you fail to make your payments, you will have to start over from scratch until you do.

Clark is in favor of the new law because he has suffered huge losses from former tenants who filed bankruptcy while living in his properties.

There is no way to make everyone happy in this process, but something has to change. Our debt levels are huge today as a nation and as individuals.

So, if you're considering filing for bankruptcy, you need to do it before mid October.

Or, work on paying off your debts before then. Otherwise, the bite will hurt quite a bit more down the road.

More Clark Howard Credit and Banking Tips [an error occurred while processing this directive] Full list