Bankruptcy Shooting themselves in the foot...
#1
Posted 22 March 2003 - 05:07 PM
#3
Posted 22 March 2003 - 07:28 PM
#4
Posted 22 March 2003 - 08:47 PM
Are the saying that Ch.11 no longer cleans your slate for a fresh start?
If so, does this mean the return of debtors prison is far behind?
#5
Posted 23 March 2003 - 01:17 PM
Follow the money on this one; who gave millions in campaign contributions to see this bill pass? Your friendly credit card companies(MNBA, CapOne, etc.) and money center banks. My guess is that if it passes the Senate (where it has hung up the last several sessions) there will be a flood of personal bankruptcies. If you file under the new law, you will never get out of debt, which is same as debtors prison.
#7 Guest_Icky Twerp_*
Posted 23 March 2003 - 05:46 PM
The skyrocketing debt figures reflect that lenders are going after non-credit worthy borrowers. That is called "predatory lending", but then don't we all believe in personal responsibility? Those people shouldn't take out those loans. They should show personal financial discipline, shouldn't they?
As much as I do feel sorry for those caught in this snare, isn't this the first step in the collapsing credit bubble we are all expecting? Isn't their misery just the first foretaste of what some large percentage of the population will encounter?
An owner of several used-car dealerships that rode on a plane next to me explained two things that made my blood run cold:
1) only 10% of adults are "credit worthy"
2) The average household has $8000 in credit card debt.
I'd suggest that households with credit card debt and no real credit -worthiness are poorly positioned to cope with a severe economic downturn. I'd assume, even more, that such people would also have a large house note and at least one large car-note.
So we are entering into a "distribution top", and this new law is just a signpost on the way down.
Will this bill really save JPM & C?
Was the exposure of Enron/Worldcom/Tyco, et al, the bottom of corporate malfeasance, or is there more to come?
#8
Posted 23 March 2003 - 05:48 PM
#9
Posted 23 March 2003 - 07:49 PM
More to come, lots more.
How about the WoOrld's biggest black box --- The General.
Wait until that baby is exposed to the light of day.
And the ones that are left are, like Enron,
TOO BIG TO FIX
which by the way is an OFFICIAL DOGBOY term. I invented on this site many months ago. No charge for reproduction.
This will become the motto of the US economy:
TOO BIG TO FIX
#10
Posted 23 March 2003 - 10:56 PM
#14
Posted 28 March 2003 - 01:49 PM
#15
Posted 28 March 2003 - 04:28 PM
http://www.house.gov...pdf/RL31706.pdf
Among the tidbits ... currently if your car gets repo'd and its sale value doesn't cover the loan amount, you can discharge the unsecured amount in bankruptcy. After this "reform," you can't.
Probably the most penetrating observation in the report is that as more categories of debt become non-dischargeable in bankruptcy, more Chapter 13 repayment plans will fail. Meaning that the debtors get on an endless treadmill of court appearances. Meaning $$$$ for guess whom?
"Dollahs -- fire-starters for the K-wave winter." - Drano
"Three humps and a dump." - anotherone, 21 SEP 2004
"No gold was harmed in the making of this movie." - Bizarro Greenspan
[i]"Da Track. Da place where Morons bet on Animals Controlled by Criminals." - our jickiss
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