machinehead Posted March 6, 2003 Report Share Posted March 6, 2003 The bonks have been trying to pass bankruptcy "reform" for at least five years ... and they're BACK AGAIN. Debt is forever "Rep. Mel Watt, a North Carolina Democrat, said he supports changes in the bankruptcy laws in principle, but not the House legislation as written, which he said would create "a paupers' bankruptcy court." "I think we're about to engage in a travesty on the public," said Watt, who is from Charlotte, a major banking center. What Rep. Watt is alluding to is that for the first time, bankruptcy filers would be treated differently according to whether their income is above or below the median ... hard to reconcile with 'equal protection.' The basic purpose of this bank-written bill is to make it more difficult to discharge credit card debt in bankruptcy. A laudable objective, if it prevents frivolous and abusive filings. But the timing, in the middle of a slump after banks have been irresponsibly handing out debt like candy, is terrible. And treating Chapter 7 bankruptcy filings of upper-income taxpayers as "presumptively frivolous" seems equally abusive. Link to comment Share on other sites More sharing options...
Hypertiger Posted March 6, 2003 Report Share Posted March 6, 2003 I hope they pass it... then watch as a massive wave of bankruptcies happen just before it... Link to comment Share on other sites More sharing options...
Guest yobob1 Posted March 6, 2003 Report Share Posted March 6, 2003 I hope they remember that you only get turnip juice out of a turnip. Secondly by forcing more people into chapter 7 thereby causing them to liquidate assets is going to add more goods for sale at distressed prices. Of course the way things are these days people own nothing other than a payment book anyway. I had a guy in this week with an income in the $200K range wanting to buy an $8K camper. First thing he was worried aobut was the monthly payment of $160. Then he found out his lender wanted an actual honest to god $800 down payment, that almost blew the deal. What finally killed it was he found out that he had to pay the IRS $2500 which was the total cash savings in the family accounts. Imagine $200K and living hand to mouth. More typical than not these days. Link to comment Share on other sites More sharing options...
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