Bankruptcy grace period

Michael Pollak mpollak at panix.com
Thu Mar 22 20:33:27 PST 2001


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>



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