How Will Obama’s New Consumer Financial Protection Agency Affect Bankruptcy?
Individuals who have filed for bankruptcy in the past consider rebuilding their credit an immediate priority, as a bankruptcy remains on one’s credit report ten years after a Chapter 7 personal bankruptcy and seven years following a Chapter 13 personal bankruptcy.
A huge percentage of these individuals have probably turned to the widely marketed “Freecreditreport.com”, owned by the credit bureau Experian. Freecreditreport.com corners its visitors into a monthly subscription fee and the false information that one needs to check their credit score like their e-mail, though a government task force argues that it changes gradually and should only be checked yearly, for free—even if you’re recovering from a bankruptcy on your credit score.
Battles against big credit card companies and big banks that give bad mortgages and drive their consumers into bankruptcy will soon be spearheaded in a proposed Consumer Financial Protection Agency. The CFPA agency, considered a priority legislation to be passed, will be headed by none other than consumer bankruptcy expert and Harvard Law graduate Elizabeth Warren. For decades, Warren has fought to remove the stigma that bankruptcy filings are a result of excessive consumer spending by defending the way they tend to follow divorce and misfortune. She pledges to defend the plight of so many middle class families, an entity that has been on a steep decline since the bankruptcy expert co-authored the study “the Fragile Middle Class” in 2000.
Many people have high hopes that Elizabeth Warren will defend the common consumer in the forthcoming Consumer Financial Protection Agency. While one cannot predict whether these watchdogs will diminish the unexpectedly high bankruptcy filings of 2009, one can always turn to bankruptcy for an automatic stay from the hungry creditors.
If you’re concerned that a foreclosure will leave you homeless or a creditor lawsuit will take the clothes off your back, a bankruptcy can help protect you. The attorneys at Legal Helpers can help you maneuver through bankruptcy and prevent you from losing the essential things in the process. Call us for a free initial consultation, available 6 days a week toll-free at 1.800.260.1402.
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