In the latest twist in the Bankruptcy Potboiler, the Justice Department has announced that it will waive enforcement of portions of the new bankruptcy law for Louisiana residents and some Mississippi residents. They got it right: On the eve of the effective date of the new laws, they see that the bill is a terrible mess for people who are in desperate financial trouble. Hurrah for the Justice Department for saying they will back off this terrible bill. Notice that to provide even minimal protection for people following a catastrophe, the Justice Department must offer wholesale waiver of enforcement of multiple provisions that Congress specifically put into the bill. That’s pretty strong evidence that the changes in the law are going to have a hard impact on families in trouble — including those who don’t get a special hurricane break.
This is a companion discussion topic for the original entry at https://talkingpointsmemo.com/?p=1249986