Cleveland Law Library Weblog

President Bush signs Bankruptcy Bill

The Bankruptcy Reform Bill became law on April 20, 2005, when it was signed by President Bush.  See Major Bankruptcy Overhaul Becomes Law by Reni Gertner, Lawyers Weekly USA, April 20, 2005. 

Reform Bill Increases Liability of Bankruptcy Attorneys

Under the Bankruptcy Reform Bill, consumer bankruptcy attorneys must certify the accuracy of their clients' claims.    Attorneys who can not prove they made an adequate fact check are subject to sanctions.  See "Lawyers to Take Bankruptcy Bath" by Xenia P. Kobylarz, Eastbay Business Times, April 8, 2005. 

Federal Bankruptcy Reform Bill Expected to Pass

The House is expected to vote next week on the Bankruptcy Reform Bill, which has already been passed by the Senate.   The bill is expected to pass, and take effect in October.   The bill will make it more difficult for individuals to file a Chapter 7 Bankruptcy.

See "People May be Urged to File Now or Pay Later" by Brian Tumulty,  April 7, 2005, News-Leader, Springfield, Missouri.

For a quick summary of the bill, see "Bankruptcy Reform and You" by Ray Martin, CBS News, March 18, 2005.

For bill text, summary and status, go to Thomas.gov: Senate Bill 256

For more information, see: Bankruptcy Legislation and Reform News Main Page