How bad is the new bankruptcy law?

The new bankruptcy law adds a large number of new documentation requirements and makes it more difficult to process ANY bankruptcy. It also allows no relief for people who have lost their documents - such as people from the Gulf Coast whose home was destroyed in a hurricane or flood.

Congress, in its great wisdom (and at the behest of its banking paymasters who wrote the bill in the first place) announced that it was a perfect bill as it was and nothing needed to be changed for the evacuees from the hurricanes.

Now the Justice Department has stepped in. They have announced "that it will waive enforcement of portions of the new bankruptcy law for Louisiana residents and some Mississippi residents."

Go to TPM Cafe where Elizabeth Warren (Bio) tells the story.