The Detroit News. Applies a new standard for determining whether people filing for bankruptcy should be forced to repay their debts under a court-approved reorganization plan rather than having the debt dissolved. If a debtor is found to have enough income to repay at least 25 percent over five years, a reorganization plan generally would be required.
Limits repeat bankruptcy filings.
Requires debtors to participate in credit counseling programs before they file for bankruptcy court protection unless special circumstances prevent it. Credit counselors generally inform consumers about the consequences of bankruptcy, such as its potential impact on a debtor's credit rating, and provide guidance on managing finances. Gives highest priority among debts to child support payments, putting them ahead of credit card debt and other obligations. Prohibits companies in bankruptcy from selling their customer lists to raise money to pay creditors. Ends the requirement for children's names to be listed on bankruptcy applications and related documents, to prevent contacts by sexual predators.