President Bush signed the biggest rewrite of U.S. bankruptcy law in a quarter century on Wednesday, making it harder for debt-ridden Americans to wipe out their obligations.
“Bankruptcy should always be a last resort in our legal system,” Mr. Bush said. “If someone does not pay his or her debts the rest of society ends up paying them.”
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 in six months. The 500-page legislation won final congressional approval last week after being 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.
For this complete story, please visit President Signs Bankruptcy Reform Bill, Makes Comments in Ceremony.
