Bankruptcy Law Proposed

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Q. I talked to one of creditors on the phone. He was collecting for a medical debt. He said that under the new bankruptcy law passed by congress I could no longer discharge this debt because it was involved needed medical services. He sounded convincing. However I doubt this for several reasons. For one thing what I think he is referring to the new law passed in March. That is not even signed into law yet. Even if it were signed into law most provisions of it would take six months to come into effect. Still I think there is at least a logical possibility that the law has changed. Has it? Is there any change in the way medical expenses can be discharged by bankruptcy in the past few months?

A. This debt collector is doing what many, many debt collectors (but perhaps not all) do so well....lie through his teeth in an attempt to shake some money out of you. There have been no new bankruptcy laws passed this year and the currently proposed amendments are dying on the vine. Never believe threats issued by debt collectors. I have also been told by a lawyer that if it is ever passed, it will be at least 6 months before it can actually take effect. That is when the flood gates will open.

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