Blog Post Date: Oct 18, 2005

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That's in part why the Consumer Federation of America (CFA) together with the National Association of Consumer Bankruptcy Attorneys will call on lawmakers Wednesday to postpone implementation of the law for Katrina victims for six to 12 months, said CFA's legislative director Travis Plunkett.

It's nice to see CNN Money covering this almost a week after I put this on my blog. I wrote into CNN about it as well.
It's amazing that they've got some of the poorest people in the nation in refugee camps in Louisiana and around the nation.

People are in trauma. These people barely know what day it is. Now they're potentially being legislated on for bankruptcy. That's pretty ridiculous. I have a problem with that.

Maybe the government will set up bankruptcy booths in the Houston Astrodome so that people can conveniently declare bankruptcy, by the October 17th due date.

Hurricane Katrina is going to bring us stories of credit and debt late payments, defaults, bad credit. debt settlement, bankruptcy etc.
This is a bad situation which is no fault of the people. Some people are going to stop paying their bills just because they can't pay them. PERIOD!!

As I've said before, something that will make me furious is if these crisis victims start getting hounded by debt collectors anytime soon. Third party collection agencies who call up and say, "well I understand you've been in the New Orleans hurricane. It's been six weeks since the hurricane, I'm demanding that you can start paying your bills or we'll take you to court." The next thing the bill collector is going to hear is , "CLICK!"

Things are not going to be status quo for these Hurricane Katrina catastrophe victims for a long while. I just hope that the mechanical credit system will understand that. Things can't be done on a 30, 60, 90 day basis like the computer program says. People aren't machines.

Bankruptcy worries for Katrina victims - Sep. 6, 2005: "Bankruptcy concerns for Katrina victims
A new bankruptcy law may deal another blow to those left financially hard up by the storm, some say.

The brutal distress of the nearly one million people affected by Hurricane Katrina may be compounded for those victims who could face bankruptcy in the coming months.
Consumer advocates and bankruptcy attorneys are concerned that tens of thousands of people may be pushed into bankruptcy as a result of the storm and will be unduly hindered by the provisions of a new bankruptcy law going into effect Oct. 17.
The new law makes it harder for individuals to file for bankruptcy under Chapter 7, which allows them to clear their debts and get what's known as a 'fresh start.' It makes it more likely that those wishing to declare bankruptcy must do so under Chapter 13, which requires debtors to repay some or all of their debts within five years. "

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