Proposed changes to bankruptcy laws could help struggling families :: WRAL.com

Monthly bills remain a problem for many families. As COVID-19 relief programs run out, bankruptcy may be the only option.

A push for changes to bankruptcy law would streamline the process to make it easier for people to get back on their feet.

For months, people who couldn’t afford their mortgage or student loan were able to take a break from those bills, thanks to state and federal COVID-19 relief programs.

But consumer bankruptcy lawyer Ed Boltz told 5 On Your Side, the programs won’t last forever. “We’re going to see, over the next six months or a year, I think, a lot of those protections get canceled. And that’s where bankruptcy will be needed to help clean that up.”

Boltz supports the changes introduced last year in the Consumer Bankruptcy Reform Act.

One targets student debt for which $ 1.67 trillion is currently owed.

Boltz says that under the proposal, that debt would be treated like other debt – and released as part of a bankruptcy filing.

“There are people, especially young people, who delay the creation of families, buy houses, buy cars,” Boltz explains. . “

The proposal would also turn Chapter 7 and 13 bankruptcies into a single filing, Chapter 10.

This would make it easier and cheaper to file a claim for relief.

And Boltz says he will fill the loopholes that allow the rich to exploit the bankruptcy system.

“Previously, bankruptcy was just this drastic, crazy thing, and now people see it more as good, it’s a way of controlling who gets relief and who doesn’t and how much relief they do or don’t. don’t get it, ”Boltz said.

The bill did not get out of committee in the last session of Congress. In the future, it is hoped that lawmakers will reconsider certain elements.

About Marc Womack

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