Debt Articles of Interest

Bankruptcy

The New Means Test is Just Plain Mean!
The new Bankruptcy Abuse Prevention, Consumer Protection Act was signed by President Bush on April 20, 2005. There are 25 changes in the bill that may have an effect on your ability to file for bankruptcy protection. Some changes went into effect immediately upon signature; the balance will become law on Oct 17, 2005.
Recent Changes to Bankruptcy Laws
On April 20, 2005, President Bush signed into law a new Bankruptcy requirement that any person contemplating bankruptcy; must attend Credit Counseling at an approved non-profit credit counseling service prior to the filing of any bankruptcy petition. The new Law will be in effect October 17, 2005.
25 Changes to Bankruptcy Law
More details on the latest and upcoming changes to the bankruptcy law. A must read for those contemplating bankruptcy!
A New Role for United States Trustees
By attorney Sue Ann Slates, this article outlines many of the pitfalls of the debt consolidation industry, and recommends changes to bring the industry back in line with its intended function.
Finding a Bankruptcy Attorney
What to look for when shopping for an attorney to help with your bankruptcy, or to help you decide whether to go the bankrupt route.
How did your Congressperson vote on the Bankruptcy Abuse Prevention Act?

Recently, Bank of America purchased credit card firm MBNA
and Citibank began gobbling up retail store cards. Only the future will tell how this will affect consumers.

Sept 19, 2005 - Credit Counselors Play Both Sides of the Street, by the Federal Trade Commission
The Federal Trade Commission says many credit counseling organizations are nonprofit and work with you to solve your financial problems. But beware … More
Should you desire a more in depth understanding of how credit counseling services work and what to beware of, a must read is “Testimony before the House Ways and Means Committee Subcommittee on Oversight regarding Non-Profit Credit Counseling Organizations”. The testimony was presented on November 20, 2003, by Deanne Loonin, Staff Attorney, on behalf of National Consumer Law Center and Consumer Federation of America. In the document, Ms Loonin makes a case that policymakers are increasingly encouraging or requiring that consumers seek assistance from credit counselors without first taking adequate steps to improve the quality of credit counseling.
FTC Consumer Alert: FTC Consumer Alert on Bankruptcy being misrepresented as Debt Relief. Read Debt Relief - Bankruptcy in Disguise to learn more.
FTC: Choosing a Credit Counselor
Some points to ponder when looking for someone to help you relieve your debt.

Soon you'll be able to get your credit report for free. A recent amendment to the federal Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer reporting companies to provide you with a free copy of your credit report, at your request, once every 12 months
Credit Report for Free
Changes in the current credit laws provide you with an opportunity to see what the credit industry is saying about you.
Federal Trade Commission: Access to Free Credit Reports

What Every Katrina Victim Should Know
CNN/Money has published an important message for Katrina Victims in need of assistance. We appreciate the clarity presented by Jeanne Sahadi, Les Christie and Jessica Seid (CNN/Money staff writers)

The Federal Discount Rate is the interest rate at which banks can borrow money from the Federal Reserve. FRB: H.15 Release--Selected Interest Rates
Federal Reserve stats for consumer credit. It shows an up to date look at interest rates and our current indebtedness: FRB: G.19 Release--Consumer Credit
In a little ballyhooed Supreme Court ruling, Marquette vs. First Omaha Service Corp., it became possible for national banks to charge the interest rates of the state in which the credit card company was registered, and apply those interest rates in any state they wished. In a stroke of genius Citibank moved its entire credit card operations from New York City to South Dakota where the usury laws were far more exploitable.
The US Congress passed the Gramm-Leach-Bliley Financial Modernization Act in 1999. A section of the act allows banks to charge interest rates equal to those charged by any other bank operating in their state. Financial Modernization
Loan Shark or Loan Officer: Charging economically vulnerable Americans outrageous interest rates and fees is simply not acceptable

The median income for a 4-person family listed by state: check here
You can view your state’s allowable interest rates
Read more about Average family debt from January 1943 to May 2005: US Federal Reserve Board: Family Finances
Note: Revolving credit (credit card debt) first appears in January 1968!