I've been bugging an actor friend of mine to file for bankruptcy and sending him ominous articles about the doom to come. But true to the spirit that got him in this spot in the first place, he immediately spotted that one of my articles mentioned a six-month grace period -- so, he reasoned, he could put off filing that much longer. Is there a hole in this argument that I should tell him about? Or am I just an ant arguing with a grasshopper? The article that inspired his procrastination is excerpted below. I have to admit, if there isn't any increased danger of getting caught out, there's something to be said for getting his money's worth. Besides the fact that, when he gives up his cards, he may have to throw in the towel on this dream earlier than he intended.
Michael
New York Times
March 9, 2001
Bill to Restrict Bankruptcies May Lead to Surge in Filings
By RIVA D. ATLAS
A s legislation to tighten the rules for filing for bankruptcy gathers
momentum in Congress, consumers facing a financial squeeze are being
advised to act sooner rather than later.
Lawyers say they are cautioning clients not to delay, and some are
running advertisements. Those actions and a continued weakening of the
economy are likely to contribute to a surge in filings this year.
<snip>
"My Chapter 7 business is up 25 percent so far this year," said
Barbara Wyskowski, a consumer bankruptcy lawyer based in Sea Girt,
N.J., adding that she gets several e- mail inquiries a day about the
legislation. Ms. Wyskowski predicts that business will pick up more if
the law is passed. From the time the legislation is signed into law,
there will be a six-month period before the changes take effect.
Robert A. Goering Sr., a consumer bankruptcy lawyer in Cincinnati, who
noted little pickup in his work so far, said: "I'd expect a 10 to 15
percent increase in bankruptcy filings if the law passes in the six
months preceding its implementation. Then I'd expect a dramatic
decline after it becomes effective."
<end excerpt>