# Overhauling Bankruptcy



## mhprecht (Oct 13, 2003)

I haven't read the bill but I'm a little troubled by Congress tightening the Bankruptcy law.

If the folks were out there complaining it would make sense, but there wasn't to my knowledge. Also, as far as I know, the credit card companies were making record profits these last few years. In fact it was consumer spending that kept the recession as mild as it was, or so I've read.

So why this bill at this time?

Any thoughts?


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## Bobm (Aug 26, 2003)

No one forces people to use credit cards and people should pay their debts. I haven't read what the changes are so I can't comment directly, but my gut feeling is people should be held personally accountable for their actions.


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## rap (Mar 26, 2002)

people can get away with an awful lot when declaring bankruptcy. i'm glad to see a bill on it. anyone know how many times a month trump declares bankruptcy? crazy


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## ej4prmc (Dec 3, 2004)

I am going to file before the new laws are enacted! :beer:


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## IAHunter (Sep 1, 2003)

Two years ago I worked with a guy who stopped working all overtime for two months. The reason? He was making TOO MUCH to declare bankruptcy. Within three months of the bandruptcy he had bought a one year old Ford F-250 EC 4X4 and a Lund boat for fishing the Lakes.

Now, his wife doesn't work. She is in her mid 30's and gets a temp job once every few months. I forgot to mention that she quit her temp job while he stopped working overtime. When he was telling me about all of this, he could tell I was getting a little irratated. I ended up telling him that the people who pay for all of those debts that he racked up are people like me who have clean credit, do not buy what they can't afford, and live within our means. We pay higher interest rates on EVERYTHING!!! Not just credit cards.

Is this a good bill? As long as it has exemptions for people that have legal, medical, or similar problems I say yes. Make people pay for what they borrowed.

RoosterHunter


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## ej4prmc (Dec 3, 2004)

My sister declared bankruptcy on 3.4 million on a tuesday and had a new car that friday! I doubt her job as a Walmart mgr. would have paid that bill off.


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## Militant_Tiger (Feb 23, 2004)

Something certainly needs to be done to solve the problem of cheating the system, but for some reason this bill smells funny to me.


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## mhprecht (Oct 13, 2003)

Iowa Hunter wrote:



> We pay higher interest rates on EVERYTHING!!! Not just credit cards.


I agree there was likely some abuse on the part of some...on the other hand, I worked with a guy who was forced into bankruptcy due to medical costs, that weren't covered by insurance, as a result of his child's developing a brain tumor.

And Thomas Jefferson, 3rd President of the United States, declared bankruptcy not once but several times.

To my knowledge the recently passed law doesn't address higher interest rates or make exemptions for medical or other "stuff that happens."

On the other hand, perhaps competition between lenders will ultimately drive down interest rates now that lenders won't have to set aside as much in reserves to cover bankruptcies....or at least you would think it would work that way.

But I'm still a little uneasy.


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## IAHunter (Sep 1, 2003)

As long as we, as consumers, are smart about what we do, the business' will lower interest rates to stay competitive. And this isn't just about interest rates. It's about the costs on all products. But it starts in the checkbook first. Compare, Compare, Compare!!! If we allow it, of course they will keep the prices and rates up. If I owned a business, I would charge as much as consumers are willing to pay.

IaHunter


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## Gohon (Feb 14, 2005)

> ITo my knowledge the recently passed law doesn't address higher interest rates or make exemptions for medical or other "stuff that happens."
> 
> 
> > IIRC it tightens the qualifications on filling for bankruptcy and each case must now be reviewed on it's merits. This should still protect someone with a situation such as the person whose child had a brain tumor. I believe it is to go after those that file but continue to have a yacht, cadillac and home stashed away. However that is hearsay on my part as I haven't read the bill yet.


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