Sen. Elizabeth Warren pushes bill to make it easier and cheaper to file for bankruptcy
Source: CBS News
Updated on: December 18, 2024 / 10:05 AM EST
Continuing a decades-long effort to change the nation's bankruptcy system, Sen. Elizabeth Warren plans to propose legislation on Wednesday aimed at making the process less costly and complicated for the hundreds of thousands of individuals who seek court-sanctioned relief from debt each year.
"People typically file for bankruptcy for one of three reasons: a job loss, a medical problem or a family breakup — and when they do, they're faced with an expensive and complicated system," the Massachusetts Democrat said in a statement in reintroducing the bill, known as the "Consumer Bankruptcy Reform Act." "My bill would simplify and modernize the consumer bankruptcy system to make it easier and less expensive for people to get relief," Warren added.
Bankruptcies rising
The measure comes as personal bankruptcies compared this year with 2023 levels. More than 400,000 Americans have filed for bankruptcy in 2024, although that figure is far below their pre-pandemic average of about 750,000 personal bankruptcy filings a year.
Warren said her bill would help families "avoid eviction, keep homes and cars and discharge local government fines." It would also create a repayment plan for unsecured debt, including student loans, as well as eliminate a restriction that bars people from shedding private and public student debt in bankruptcy, like other types of consumer loans.
Read more: https://www.cbsnews.com/news/elizabeth-warren-bankruptcy-bill/