The U.S. House of Representatives voted 302-126 to approve legislation that
will make it more difficult for consumers to erase debt by filing for bankruptcy
under Chapter 7, USA Today reports.
The Senate has already passed the legislation and President Bush says he will
sign it.
The newspaper notes that for people looking to file for bankruptcy, the legislation
creates a means test that will generally force those individuals who earn more
than their state's median income to file under Chapter 13, which includes a
repayment plan. The legislation also requires filers to enroll in credit counseling.
The law will become effective 180 days from when Bush signs the legislation,
the newspaper reports.
Critics of the legislation, which was backed by credit card companies and other
creditors, say it leaves vulnerable people who have accumulated large amounts
of debt because of a loss of a spouse, loss of a job, or medical expenses.
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