Personal bankruptcies rise 11% in one quarter
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First there was data about the disparity between the rich and poor. The wealthy became wealthier, thank you Mr. President. The number of people at poverty level went up. One cannot blame the president for not being honest. He did say before he was elected "This is an impressive crowd. The haves and the have-mores. Some people call you the elite. I call you my base." (Al Smith Dinner, Waldorf Astoria 10/19/2000). The Census Bureau reported in August that overall there were 37 million people living in poverty, up 1.1 million people from 2003.

Now we learn from Michele Singletary's column "When bankruptcy becomes personal" in The Washington Post that:

"The overall quarterly increase was fueled by consumer Chapter 7 filings, which rose 17.7 percent, to 362,481 from 308,028, for the second quarter of 2004. Under Chapter 7, a person's assets are liquidated, except those exempted by law, and debts are wiped away. Such cases are usually simple. The average filer doesn't even appear before a judge.

"This recent surge in bankruptcy petitions is largely attributable to consumers scrambling to file before the new, tougher Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 takes effect Oct. 17."

The new act was tailor made to benefit corporate America. There is no doubt that it will do so. Those facing bankruptcy can pound salt.