ECONOMICS REPORT - Declaring Personal Bankruptcy Will Become

ECONOMICS REPORT - Declaring Personal Bankruptcy¹ Will Become Harder in the U.S.
By Mario Ritter

Broadcast: Friday, May 06, 2005

I'm Gwen Outen with the VOA Special English Economics Report.

Bankruptcy is a legal process for people and businesses that are in debt. It is designed to help them get a new start. It is also designed to help their creditors² get paid at least some of what they are owed.

In the United States, the credit industry says bankruptcy laws have made it too easy for people to escape their debts. On April twentieth, President Bush signed a bill passed by Congress to make changes in those laws. The new law is called the Bankruptcy Abuse Prevention and Consumer Protection Act of two thousand five.

The president stated: "Bankruptcy should be a last choice. If someone does not pay his or her debts, the rest of society ends up paying them."

Last year, there were almost one million six hundred thousand requests for personal bankruptcy protection. The number has grown since the last big changes in the bankruptcy laws in nineteen seventy-eight.

Two kinds of bankruptcy are most common for individuals. These are called chapter seven and chapter thirteen. They are named after the parts of the United States Code that define them.

Chapter thirteen bankruptcy requires people to have a plan to repay their creditors. They make payments for three to five years until most of their debt is paid off.

In chapter seven bankruptcy, people must give up some of their property. The property is then sold to pay their creditors. But the people are able to keep the money they earn after they bring their bankruptcy case. Under chapter seven they are also able to keep most of the property they buy after that time.

The new law will make it more difficult for people to declare chapter seven bankruptcy. Those with above-average earnings³ in their state may have to file under chapter thirteen instead.

The law also requires all people to get professional credit advice before they seek bankruptcy protection. And it puts limits on property that can be protected from creditors.

Critics say the new law will hurt people whose financial troubles were caused by situations like a job loss or high medical costs. Critics also say bankruptcy will become more costly⁴ for average people.

Most of the changes will go into effect in October.

This VOA Special English Economics Report was written by Mario Ritter.  I'm Gwen Outen.

1 bankruptcy   

n.破产；无偿付能力

参考例句：

• You will have to pull in if you want to escape bankruptcy.如果你想避免破产，就必须节省开支。
• His firm is just on thin ice of bankruptcy.他的商号正面临破产的危险。

2 creditors   

n.债权人，债主( creditor的名词复数 )

参考例句：

• They agreed to repay their creditors over a period of three years. 他们同意3年内向债主还清欠款。 来自《简明英汉词典》
• Creditors could obtain a writ for the arrest of their debtors. 债权人可以获得逮捕债务人的令状。 来自《简明英汉词典》

3 earnings   

n.工资收人；利润，利益，所得

参考例句：

• That old man lives on the earnings of his daughter.那个老人靠他女儿的收入维持生活。
• Last year there was a 20% decrease in his earnings.去年他的收入减少了20%。

4 costly   

adj.昂贵的，价值高的，豪华的

参考例句：

• It must be very costly to keep up a house like this.维修这么一幢房子一定很昂贵。
• This dictionary is very useful,only it is a bit costly.这本词典很有用，左不过贵了些。