I suspect the banks would prefer that aspiring business owners use secured debt, such as home equity lines, placing more risk on the side of the borrower.

Short answer: I think it's going to put a lot of small businesses under the table, and greatly impair the frequency of start-ups, which will have to raise more capital, just to borrow start-up funds.

Later tonight, I will deliver a hardcopy of this diary to a financial advisor, who was surprised to hear of the coming change.

Another associate of mine, a banker, was unaware of the full implication of the upcoming change in bankruptcy laws.

If most experts do not know, how can the consumers possibly be warned, and take measures to prepare themselves for the change?

It smells like an ambush.

Have Keyboard. Will Travel. :)