Obama to propose overhauling

Democratic presidential candidate Barack Obama will propose overhauling US bankruptcy laws on Tuesday to ease their impact on people unable to pay their bills because of medical expenses or military service. ‘I’ll reform our bankruptcy laws to give Americans who find themselves trapped in debt a second chance,’ Obama will say in prepared remarks for a town hall in Powder Springs, Georgia, which is outside of Atlanta. ‘While Americans should pay what they owe and we should be fair to those creditors who were fair to their borrowers, we also have to do more for the struggling families who need help most,’ he added. Obama, an Illinois senator, and Republican John McCain, an Arizona senator, have been squaring off this week over the economy as they court voters who are increasingly anxious over soaring energy costs and a deteriorating jobmarket. McCain and Obama will face each other in the November election. Obama took aim at a 2005 overhaul of bankruptcy laws that was strongly supported by credit card companies and other consumer lenders which made it tougher for people facing personal bankruptcy to discharge debt. Obama said about half of all personal bankruptcies result in part from the burden of high medical expenses. He said he would change the law so that Americans who can prove that their bankruptcies resulted from high medical costs could get some relief from their debts. Obama would also create a ‘fast-track’ bankruptcy process for people serving in the military and their families who get behind on expenses because of long deployments, repeated moves and predatory lenders.