Bush to Sign Rewrite of Bankruptcy Code

‘ Americans weighed down by credit card bills and other financial obligations will have a harder time wiping out their debt under a bankruptcy bill President Bush is poised to sign.

Many debtors will have to work out repayment plans instead of having their obligations erased in bankruptcy court under the law, which will go into effect six months after Bush signs it Wednesday. The legislation is the biggest rewrite of the bankruptcy code in a quarter-century and was pushed for eight years by banks and credit card companies.

The measure would require people with incomes above a certain level to pay some or all of their credit-card charges, medical bills and other obligations under a court-ordered bankruptcy plan.’

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