Bankruptcy Rule Is Waived After Storm

WASHINTON -- The Justice Department yesterday waived a requirement of a new bankruptcy law set to take effect this month to exempt people whose personal finances have been hurt by Hurricane Katrina, the New York Times reported.

The waiver will allow people in Louisiana and the southern district of Mississippi to file for bankruptcy without first undergoing mandatory credit counseling.

A coalition of bankruptcy lawyers and consumer advocates has pressed Congress to delay the law's implementation date for Hurricane Katrina victims, especially since many had no plans to file until the storm damaged their homes and cut into their pocketbooks, the Washington Post reported.

The Justice Department Executive Office for United States Trustees, which enforces bankruptcy law, said the waiver was temporary but did not specify a time period, the Times reported.

-- NYSSCPA.org News Staff

Posted on 10/5/05