New provisions also will require credit counseling before consumers declare bankruptcy. Critics of the pending bills blame the banks for their credit-card problems. They say bankers send cards to just about everybody, regardless of creditworthiness. The banks, say critics, encourage people to use credit irresponsibly. Others worry about the effect of the new bill on mothers and children.
Men sometimes declare bankruptcy to get rid of all their regular creditors.
This frees money to pay child support and alimony, which are not discharged in bankruptcy. Some fear that the proposed law will put mommy in competition with big credit-card issuers, and that mommy won't be able to handle the job. Since more than half of today's marriages will end in divorce, this could be a large problem. Nevertheless, the outlook is for passage before Congress recesses in October. The House and Senate bills stem from the recommendations of the National Bankruptcy Review Commission, which studied the law and reported to Congress last fall.