In signing the New Bankruptcy Bill that was enacted on October 17, 2005, President Bush promised that this bill would make credit more affordable and that we would be better off.  Is credit more affordable and are we better off?

That question was explored in a recent article by James Suroweicki in the New Yorker.   He found that credit is not easier to obtain since the enactment of the new bankruptcy bill and may actually be worse.  He also noted that more and more people who are in debt are walking away from their homes when they owe credit card debt that they cannot pay. They are not sure that they can file for bankruptcy; the credit card companies harass them non-stop by phone, mail and sometimes suing them and garnishing their wages; and the mortgage companies typically do not harass homeowners who simply walk away from their homes.

Mr. Suroweicki noted that without the ability of a fresh start that a bankruptcy would afford, the spending power of the Nation is less and this only worsens recession conditions.

So not only was the 2005 file amendments to the Bankruptcy Code not necessary, it has been a factor in foreclosure rates skyrocketing and the deepening economic slow down that the Nation is experiencing.