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Kids vs. credit

What to pay first: child support or the credit card bill? A bill before Congress would make that question even tougher by restructuring bankruptcy laws to allow credit card companies to recoup more of debtors’ income, reports TOMPAINE.COM.

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Current bankruptcy law prioritizes payments like child support for debtors, while either cancelling or delaying payment on high-interest, short-term debt like credit card bills. That’s an important consideration, given that one in every seven debtors who files for bankruptcy is paying child support. The new laws would leave consumers with more credit card debt after an individual declares bankruptcy, therbey making payments on previously nondischargeable debts like child support more difficult to make.

Other parts of the bill would effect working families, small-business owners, and laid-off employees. Credit card companies and banks favor the new legislation, and were among President Bush’s highest campaign donors.

Read the TOMPAINE.COM article here.


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