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The Consumer Bankruptcy Reform Act of 2024 would replace the current dual-track bankruptcy system (Chapters 7 and 13) with a single Chapter 10 for individual debtors. The bill streamlines bankruptcy procedures, reduces filing costs and complexity, allows modification of mortgages and car loans based on asset value, permits discharge of student loan debt on equal terms with other debts, and strengthens consumer protections against predatory creditor behavior. It also amends consumer financial protection laws and establishes new rules for bankruptcy proceedings.
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