Bankruptcy Reform: À La Dodd

Chris Dodd has unveiled his ideas on reforming the bankruptcy laws and protecting folks from the likes of Banker Cat. The main bullet points are as follows:

* Modify the means test to ensure families have sufficient resources to live on

* Protect children, not creditors

* Ensure all medical debts are dischargeable

* Permit bankruptcy courts to restructure mortgages so families can stay in their homes

* Allow private student loans to be dischargeable

I particularly like the idea of medical debts being dischargeable. This would be helpful during the transition period between our current and post-reform health care system. The rest of the plan is certainly worth a read, so check it out.