US waives counseling for bankrupt Katrina victims

[GutterRat]

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WASHINGTON (Reuters) - The Justice Department on Tuesday waived part of a new bankruptcy law for some victims of Hurricane Katrina, saying they would not have to go through credit counseling before filing for bankruptcy.

The stricter bankruptcy law, which makes it harder for heavily indebted Americans to wipe out their obligations, was passed by Congress last spring and goes into effect October 17. It requires debtors to undergo credit counseling within the six months before they file for bankruptcy.

 

[simplicity]

I suppose this is all in good form. There is no point incapacitating the system under the circumstances. It's fair to say that a significant number of people lost everything - particularly fixed assets but also their jobs. So declaring bankruptcy seems to me to be perfectly reasonable.