It's All President Bush's Fault -- Bankruptcy Reform Impact on Katrina Victims
Hurricane Katrina survivors whose finances are in shambles may not qualify for federal bankruptcy protection once a new law with tough eligibility restrictions takes effect Oct. 17. And anyone who intends to file before the new standards take effect must overcome other Katrina complications such as injuries, being moved to out-of-state shelters, the loss of personal financial records and the closure of the five federal courthouses in hurricane-ravaged areas of Louisiana, Mississippi and Alabama. The Bankruptcy Abuse Prevention & Consumer Protection Act, which President Bush signed into law April 20, allows only people who earn less than their states' median income to file for Chapter 7 bankruptcy protection, which lets them erase their debts after they forfeit their assets.The question that leaps to mind is "does he get blamed for the environmental disaster of Lake Pontchartrain next, or is there something else before they get to that?"
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