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WASHINGTON (AP) - A new law making it harder to erase debts in bankruptcy has failed to stop abuses and has stymied people who have legitimate reasons to file, a group representing bankruptcy attorneys contended Wednesday.
A report released by the National Association of Consumer Bankruptcy Attorneys was based on an analysis of 61,335 people who have gone to credit counseling agencies, the required first step before filing bankruptcy under the law that took effect on Oct. 17.
Of the 61,335, 97 percent were unable to repay any debts and 79 percent had gotten into financial trouble because of job loss, huge medical expenses or the death of a spouse, the report said.
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