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Title : Effect Of New Bankruptcy Law's On Foreclosure
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Effect Of New Bankruptcy Law's On Foreclosure

The bankruptcy reforms introduced by President Bush's government in October 2005 changed the debt collection system in the country. The new legislation makes the creditors victors. The consumers are quickly being in the quicksand from bad to worse situations.

The "automatic stay" provision, an important part of the new legislation allows consumers to apply for bankruptcy to stop all collection procedures and even, contact from the creditor. The same can be filed anytime by the creditor. For chapter 7/chapter 13 bankruptcy applications, the debtor should have been receiving counseling for 180 days to manage credit from a non-profit agency for credit counseling approved by the government.

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