New Bankruptcy Law

Indications are that the US Senate is about to pass a bill that will toughen existing bankruptcy law. The new version will make it more difficult for ordinary citizens to dig themselves out from debt. The credit card industry (the prime proponent of this legislation) maintains that these changes are necessary because people have been abusing the bankruptcy laws by living recklessly on borrowed money and then walking away from their obligations. Others say that most bankruptcies are the direct result of some personal crisis – an unforeseen medical condition, divorce, an extended period of unemployment, for example – and that providing the opportunity for a fresh start financially is the right and fair thing to do. Ironically, liberal bankruptcy laws were much preferred by our Founding Fathers, many of whom were farmers who relied heavily on credit and who could be wiped out financially by one bad crop. They saw the wisdom of affording a person the opportunity for a fresh start. What’s this all got to do with the registry of deeds? For the ordinary Massachusetts homeowner, the Declaration of Homestead now becomes more important than ever. A watered down bankruptcy law that just stretches out your payments rather than allowing you to start over doesn’t provide much protection. Please check out the Homestead link on our web page (www.lowelldeeds.com) which has been updated with some new information.