Talk of Bankruptcy Law Changes Surfaces in the Senate

A week after Congressional elections swept Democrats into power, talk is surfacing about possible modifications to last year’s changes in federal bankruptcy law.

Wisconsin Democratic U.S. Senator Russ Feingold raised the possibility of reviewing the law during a town hall meeting in his home state Monday.

Feingold was quoted in the Manitowoc Herald Times saying that "only the credit card companies supported the changes" that went into effect in October 2005. Feingold’s office did not return calls or e-mails seeking comment.

A subcommittee of the Senate Judiciary Committee is scheduled to meet Dec. 6 to discuss last year’s changes and what "the act did and does," says a spokesperson for Sen. Arlen Specter, the current Republican chair of the committee. Feingold is on the Judiciary’s Administrative Oversight and the Courts Subcommittee that will hold the Dec. 6 hearings.

Those hearing were originally scheduled for Nov. 16.

No list of who will appear before the subcommittee has been compiled yet, says Specter’s spokesperson.

Last year’s changes in federal bankruptcy law have sent potential filers for bankruptcy counseling and many have been unable to pay for such sessions, putting a financial strain on some counseling agencies.

The changes also do not seem to have cut the number of bankruptcy filings. While filings were down early this year, they have been trending upward again to pre-change levels.

Source: Credit and Collections World

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