April 20, 2005 - President Bush signs new Bankruptcy Abuse Prevention and Consumer Protection Act.
President Bush signed legislation on April 20, 2005 that makes it tougher for Americans to wipe out their debts and start over. The legislation, passed by Congress just the week before, had been sought for eight (8) years by banks and credit card companies, who say people are abusing bankruptcy to escape repayment. Calling the measure "an important action to continue strengthening our nation's economy," Bush said the "bipartisan bill" represented "common-sense reforms" aimed at ending abuse of bankruptcy laws.Passage of the bill represents the most thorough overhaul of the U.S. Bankruptcy laws in a quarter century. The Act takes effect 180 days after the date of enactment.